(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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