PDVSA Output to Likely Fall in Default Scenario

(Energy Analytics Institute, Piero Stewart, 14.Sep.2015) – In terms of a much talked about default, PDVSA would continue to function but the levels of output will likely decline due to a lack of investment and could see an increase in accidents at the company, said EnergyNomics President Carlos Rossi in an interview in Houston, Texas.

New projects will never advance while companies will make minimal necessary investments in producing projects and suppliers will likely move to a cash-basis ‘cascade scheme’, said Rossi.

Venezuela has already defaulted internally and not exterally yet. With oil prices at $50/bbl or below the country could theoretically have inflation somewhere between 140-150%, while with oil prices at $50/bbl or above the country could theoretically have inflation somewhere between 80-100% inflation, concluded Rossi.

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ENERGY ANALYTICS INSTITUTE (EAI) https://energy-analytics-institute.org

Energy Analytics Institute (EAI), formerly LatinPetroleum.com, is a Houston-established private organization with a satellite presence in Calgary, Mexico City and Venezuela where it operates under Editores LatinPetroleum SA. Since 1999, EAI has been a leader in energy news coverage of Latin America in particular. Coverage, run out of Latin America, now spans the world and encompasses nearly all energy and energy-related sectors.

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