Venezuela's Oil Industry Paralyzed as Strike Enters Day 26

Strategic Insights -

A gasoline drought had long lines of angry motorists backed up outside Caracas service stations on Friday, as US oil refineries were forced to cut runs due to the dwindling Venezuelan crude supplies. The opposition strike against President Hugo Chavez, now in its 26th day, has almost paralyzed the country's oil industry, with government and opposition negotiators continuing talks mediated by the Organization of American States without a clear sign of an imminent agreement. Energy Minister Rafael Ramirez said the government is making progress toward restarting operations at the nation's three main oil refineries, but government opponents claim the task could take months.

Key Takeaways:

  • The opposition strike against President Hugo Chavez has entered its 26th day, causing a significant drop in Venezuelan oil output from almost 3 million b/d to less than 200,000 b/d.
  • The strike has resulted in a shortage of gasoline in Caracas, with long lines of angry motorists forming outside service stations.
  • US oil refineries, including the 270,000 b/d Lyondell-Citgo refinery in Pasadena, Texas, have been forced to cut crude runs due to disruptions in Venezuelan crude supplies.
  • The Lyondell-Citgo refinery has been forced to reduce crude throughput by 70,000 b/d, in addition to a previous reduction of 60,000 b/d.
  • The strike has had a significant impact on international oil markets, with Lyondell-Citgo being the latest refinery to reduce crude runs.
  • Venezuela exported 1.68 million b/d of crude oil to the United States in October, making it the nation's biggest foreign supplier of crude oil.
  • The opposition is calling for Chavez to resign and call early elections, arguing that he has ruined the country's economy and is turning Venezuela into a Cuban-style dictatorship.

Statistics:

  • Day 26 of the strike against President Hugo Chavez
  • Venezuelan oil output: less than 200,000 b/d (compared to almost 3 million b/d before the strike)
  • Gasoline shortage in Caracas: long lines of angry motorists forming outside service stations
  • Reduction in crude throughput at the Lyondell-Citgo refinery: 70,000 b/d
  • Reduction in crude throughput at the Lyondell-Citgo refinery last week: 60,000 b/d
  • Crude oil exports from Venezuela to the United States in October: 1.68 million b/d
  • Import reductions at the Lyondell-Citgo refinery: 70,000 b/d
  • Reductions at Citgo refineries: two refineries in Lake Charles, Louisiana, and Corpus Christi, Texas

Sources:

  • [Sources not provided in the original text]