Venezuela’s Oil Sector: On the Brink of Collapse?

Venezuela’s oil sector is in crisis. The country’s crude production has been steadily declining for years, but in recent months output has begun to drop precipitously and exports are at historic lows. The decline in global oil prices has contributed to a critical lack of cash flow for state oil company PDVSA and its inability to invest in basic maintenance of equipment and facilities, such as pipelines and refineries. Having run up massive debts during the global oil boom, Venezuela faces the constant risk of default. Meanwhile, private investment has plummeted amid exchange rate controls and frustration with PDVSA’s financial and operational problems.  

How has Venezuela’s oil industry fallen to such lows? Will the country’s production collapse, rattling global oil markets? Will the government take action to alleviate PDVSA’s troubles, boost private investment and turn the oil sector around?  

Join us for a discussion with Francisco Monaldi, Latin American Energy Policy Fellow at the Baker Institute for Public Policy, and Raúl Gallegos, Senior Andean Analyst for Control Risks and author of recently published Crude Nation: How Oil Riches Ruined Venezuela, copies of which will be available for sale.

For more on Venezuela’s oil sector see the Dialogue’s latest analysis.

Speakers:

• Francisco Monaldi, Latin American Energy Policy Fellow at the Baker Institute for Public Policy

• Raúl Gallegos, Senior Analyst, Control Risks

Moderator:

• Lisa Viscidi, Energy, Climate Change & Extractive Industries Program Director

 

ENERGY & RESOURCES COMMITTEE