Venezuela’s Energy Crisis: A Struggle Beyond Oil

(Analysis) In the 2010s, Venezuela aimed for decarbonization, cutting carbon emissions from 198 million tons in 2013 to 62 million in 2020.

This reduction stemmed not from proactive policies but from a drop in oil production due to U.S. sanctions and mismanagement.

The US targeted PDVSA, Venezuela’s state oil company, crippling its ability to export crude and acquire production supplies.

As Venezuela’s oil output plummeted from 2.32 million barrels daily in 2013 to just 786,000 in 2023, so did its emissions.

Yet, the country’s reliance on oil revenue remained, frustrating efforts to enact climate protection laws and diversify energy sources.

Amidst this economic turmoil, Mérida, a city known for its scenic vistas, suffered frequent power outages due to neglected infrastructure and rampant corruption.

The city’s residents, like many in Venezuela, turned to fossil-fueled generators, contradicting the nation’s apparent carbon cutback.

The industrial sector echoed this dependency, with over 90% of businesses using generators to bypass the unstable grid.

Despite hydropower’s dominance, Venezuela’s reliance on thermoelectric power rose, increasing its share from 25% to 34% between 2001 and 2010.

Meanwhile, renewable alternatives like wind and solar remained negligible. Venezuela’s energy policy continued to focus on fossil fuels.

Venezuela’s Energy Crisis: A Struggle Beyond Oil

PDVSA sought new partnerships to boost dwindling oil production, with no visible plans for decarbonization or investment in clean energy.

This stance was highlighted by a 2023 report showing PDVSA and a few others lagged in renewable energy commitments.

Despite potential legal frameworks like the renewable energy bill, Venezuela’s legislative progress on energy transition stalled.

The country missed opportunities to tap international green financing, crucial for recovering from economic strife.

This energy paradox illustrates Venezuela’s broader challenges: a reliance on an outdated oil economy, inadequate infrastructure, and unexecuted environmental reforms.