Venezuela’s oil exports managed a notable 10.5% climb in 2024, hitting their highest levels since 2019. State oil company PDVSA and its joint venture partners have deftly maneuvered through shifting U.S. sanctions and a domestic economy teetering on chaos. The result? A respectable 772,000 barrels per day (bpd) average export volume for the year.
Much of Venezuela’s success stems from Washington's leniency under President Biden, who issued individual licenses that enabled Chevron and other partners to ship Venezuelan crude stateside. Chevron, in particular, was able to recover hefty debts from Venezuela through crude oil exports.
Venezuela’s shipments to the U.S. surged 64% to 222,000 bpd last year, pushing the United States into Venezuela’s second-largest crude oil export destination.
Still, the biggest recipient of Venezuela’s oil remains China, albeit with a notable 18% drop in volumes compared to the prior year. India, for its part, has emerged as a serious contender for Venezuelan crude oil importer, with the country ramping up its crude oil imports to 63,115 bpd in 2024 from just 10,300 bpd the year before. With a new recently deal inked, India could be poised for an even bigger slice of Venezuela’s crude pie in 2025 through a swap deal after India’s Reliance halted purchases of Venezuela’s crude oil in March.
The catch? Venezuela’s export gains might be on borrowed time. Frequent refinery outages continue to plague operations, and December’s monthly export volume dipped to 756,000 bpd from November’s peak of 974,000 bpd, leaving the market to wonder whether the downturn is a blip or a trend.
To top it off, U.S. policies could change sharply under new leadership, potentially throttling future exports.
As Nicolás Maduro preps for his contentious third term, Venezuela’s oil strategy remains a high-stakes balancing act between domestic survival and international diplomacy. For now, the nation is riding a wave of rising crude oil production—up 17% year-over-year—and robust partnerships. Whether that momentum will endure or collapse under political and operational pressures is anyone’s guess.
Source: Oilprice.com
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