Opinion: Two Decades Of 21st Century Socialism In Venezuela

(Energy Analytics Institute, Pietro D. Pitts, 22.Jun.2019) — New data from BP’s Statistical Review of World Energy (2019) provides two 10-year periods of study, which reveal the two-decade collapse of Venezuela’s once all mighty oil sector under Chavez-Maduro.

Simply, P1 reserves rose 76%, oil production fell 53%, and Venezuela’s R/P ratio rose 275% to 548.9 years. Venezuela’s R/P ratio should realistically be anywhere between 138.5 and 207.7 years considering production of 6 million barrels per day (MMb/d) or 4 MMb/d, respectively.

Looking forward, Venezuela’s R/P ratio is distorted by the ongoing collapse of oil production and currently settles in around 801.3 years using OPEC production data from direct communications. That figure swells to 1,082 years using data from second sources. Both figures are crazy and unrealistic, but reveal what they reveal.

A long story short, 21st Socialism under modern day dictators has robbed Venezuela of more than 1.9 MMb/d and many many more billions of dollars at the cost of ruining all of the country’s production systems, not just oil and oil-related.


© Energy Analytics Institute (EAI)

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