Venezuela's Oil Output Hits 28-Year Low in 2017

According to OPEC data, Venezuela’s production totaled 2.072 million barrels per day (bpd) in 2017. This is significantly lower by almost 300,000 bpd when compared with the previous year.

SEATTLE (Oil Monster): The Venezuelan oil production has recorded decline for the sixth straight year in 2017. The output by the country declined to the lowest level in 28 years. This is the largest production decline by an OPEC member during the year. While other member countries voluntarily cut production, Venezuela’s internal problems led to the drastic drop in output by that country.

According to OPEC data, Venezuela’s production totaled 2.072 million barrels per day (bpd) in 2017. This is significantly lower by almost 300,000 bpd when compared with the previous year. The country had produced 2.373 million bpd of oil during entire 2016. The sharp 13% year-on-year decline in output is very much in line with the economic crisis that has gripped the country during recent times. For the month of December alone, the production reported steep fall by 12% over the previous month.

Incidentally, Venezuela’s economy is very much dependent on oil exports. As per estimates, revenues from petroleum exports accounts for almost half of the country’s GDP. Also, petroleum accounts for roughly 95% of the total exports by the country. The sharp dip in production is feared to push the country into further recession. Meantime, opposition parties blamed the current government’s economic-model and widespread corruption as the primary reasons for the sudden crash in oil industry.

Venezuela has the sixth largest proven oil reserves across the globe. The country is also the sixth largest producer of oil among OPEC countries.