Venezuela’s Oil Production Rises, Yet Falls Short of Targets

Venezuela closed 2023 with a slight increase in its oil production, according to the latest data from the Organization of the Petroleum Exporting Countries (OPEC).

In November, the country produced 801,000 barrels per day (bpd), according to primary sources, and 780,000 bpd, according to secondary sources.

This marks an increase of 15,000 and 23,000 barrels per day, respectively, compared to October.

The numbers for November also exceeded the averages recorded in the first three quarters of the year.

The third quarter had the highest peak during these quarters, with 764,000 barrels per day.

Despite these increases, Venezuela’s oil production is still far from the goals set by the authorities.

For instance, in August, the Venezuelan government declared its highest oil production of the year at 820,000 barrels per day, closely followed by May with 819,000 barrels per day.

The slight rise in November represents a 1.90% increase compared to the previous month, according to OPEP’s primary sources.

Secondary sources indicated an even larger increase of 3.03%, from 757,000 bpd in October to 780,000 bpd in November.

However, these recent figures still fall short of the Venezuelan government’s projection of closing the year with a production of over two million barrels per day.

Strategies to mitigate international sanctions

Venezuela initiated strategies to ease international sanctions, negotiating with European oil firms and forming a 20-year pact with Iran.

In late 2022, with a special US license, agreements permitted Chevron to restart limited exploration and production operations in Venezuela.

Despite the growth observed, OPEC cautions that there are still many uncertainties surrounding the global oil market.

In response, many OPEC+ member countries, including Russia, have voluntarily decided to cut their supply to help maintain stability in the global oil markets.

The alliance, led by Russia and Saudi Arabia, plans to continue these commitments to achieve and maintain a stable oil market.