Earthquakes Bring Devastation to Venezuela

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Various reports indicated a death toll of at least 188 in Venezuela, with more than 1,500 others injured, and hundreds missing or trapped beneath the rubble. Industrial Info Resources is monitoring the potential fallout to Venezuela's aging energy infrastructure.

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Power Out, Airport Closed

Power was out across much of Venezuela's capital city Caracas after a string of powerful earthquakes left hundreds of people dead and several major industrial plants closed as a precaution on Thursday.

The U.S. Geological Survey (USGS) reported a 7.2-magnitude quake hit the state of Yaracuy about 6 p.m. local time on Wednesday. Another 7.5-magnitude quake was reported about a minute later, with two smaller quakes quickly following in the capital city Caracas. The USGS "shake cone" showed strong tremors spreading from the epicenter east to the capital city.

La Guaira, a coastal state just north of Caracas and host to the country's international airport, was a disaster zone, said acting President Delcy Rodriquez.

"Dozens of buildings have collapsed there ... and we are currently carrying out intensive rescue operations to save lives," she said, according to The Associated Press.

Cell phone coverage was limited and parts of the capital city were without power. The earthquake caused significant damage to the Simón Bolívar International Airport, which was closed, and natural gas services were suspended.

Refineries Still Operational

State-controlled Petroleos de Venezuela (PDVSA), was running operations normally at its 205,000-barrel-per-day (bpd) Amuay refinery in Falcon state, far from the epicenter on the nation's northwest coast. No impacts were reported at the facility, although operations could be affected by power disruptions. The Industrial Info Resources Global Market Intelligence (GMI) Petroleum Refining Plant Database offers a detailed profile of the refinery.

The same held for the 220,000-bpd Cardon refinery. Operations were normal, but susceptible to any fallout from Wednesday's earthquakes. Industrial Info Resources continues to monitor the status of the nation's eight refineries.

Meanwhile, in Moran, just west of Caracas and near the epicenter, Tripoliven CA opted to shut down a fertilizer plant as a precaution and it was unclear when normal operations would resume.

Energy Sector in Revival Mode

Venezuela's energy sector has drawn hesitant international interest since U.S. military forces seized former President Nicolas Maduro from his compound in Caracas in January. In April, Petropiar S.A., a Venezuelan joint venture in which Chevron holds a 30% stake, secured rights to develop parts of the Orinoco Belt, one of the richest oil deposits in the world.

Through its joint ventures with PDVSA, Chevron accounts for about a quarter of total Venezuelan crude oil production, or around 260,000 bpd.

It would take years to overcome chronic under-investment and poor management of the nation's energy sector, however. Much of its infrastructure is deteriorating, complicating efforts to improve the energy infrastructure in a country that's been previously saddled by international sanctions.

Swift International Response

On Thursday, the United Nations (U.N.) refugee agency said it was ready to support response efforts, while the World Food Program said it was on hand to provide emergency assistance.

According to the U.N., the earthquake was the strongest to hit Venezuela in more than 125 years. The epicenter was near the city of San Felipe, home to nearly a quarter-million people.

U.N. officials said its search and rescue teams were deployed immediately, with U.N. emergency relief chief Tom Fletcher saying he was in constant contact with his team in Caracas.

"We are assessing urgently what is needed," Fletcher said. "Our team in Venezuela is working with the authorities to identify priorities."

Key Takeaways

• At least hundreds have died due to the earthquakes.
• Much of Venezuela's refinery sector survived the quakes.

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