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Petroleum

Venezuela's Energy Minister Ali Rodriguez to Become Opec Secretary-General

Strategic Insights

— 2 min read

Ali Rodriguez, Venezuela's current energy minister and President of Opec, will become the new Secretary-General of the Organization of the Petroleum Exporting Countries (Opec). This appointment ends the internal political dispute within Opec over who would fill the position. As a result, the Venezuelan energy minister position will be left vacant, with several candidates mentioned as possible successors, including Vice-Minister of Hydrocarbons Bernardo Alvarez, Vice-Minister Silva Calderon, and Major General Rodriguez Ochoa.

Key Takeaways:

  • Ali Rodriguez' appointment as Opec Secretary-General ends the internal political dispute within Opec.
  • The Venezuelan energy minister position is left vacant, with several candidates mentioned as possible successors, including Bernardo Alvarez, Silva Calderon, and Rodriguez Ochoa.
  • Bernardo Alvarez, a member of Rodriguez' PPT party, is unlikely to be President Hugo Chavez' first choice due to the party's falling out with Chavez' ruling coalition.
  • Former President of state-owned PdV Hector Ciavaldini has left the company after a mishandled oil workers' strike that deeply embarrassed President Chavez.
  • Major General Rodriguez Ochoa, a military man with oil experience, could be a plausible candidate to fill the vacant energy minister position.
  • President Chavez has placed generals at the helm of PdV and its US-based affiliate Citgo since September.
  • Ali Rodriguez is expected to have a key role in preparing the government's draft hydrocarbons law, which would consolidate all energy legislation under a new framework.
  • The proposed draft hydrocarbons law includes an increase in royalties from 16.7% to 20%.
  • Vice-Minister Alvarez stated that Venezuela will stick to its goal of boosting output capacity to 5.8 million barrels per day (mb/d) by 2009, despite the uncertainty surrounding the PdV's leadership.
  • Venezuela's oil sector is currently experiencing a wave of investment, with potential increases in the rig count and upgrades for the Orinoco extra-heavy oil projects.

Statistics:

  • 5.8 million barrels per day (mb/d) - Venezuela's target output capacity by 2009.
  • 3.96 million b/d - Venezuela's planned output capacity for the end of the year.
  • 3.076 million b/d - Venezuela's current Opec quota.
  • 10-20 rigs - Potential increase in the rig count in the next three to six months.
  • 800,000 b/d - Potential increase in output if the government offers new development areas to oil firms agreeing to the higher royalty rate proposed in the draft hydrocarbons law.

Sources:

  • Argus, a source cited by Vice-Minister Bernardo Alvarez in Vienna last week.
  • No specific date or publication date provided for the source.

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