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Released July 31, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Major protests are planned across Venezuela on Tuesday as both the opposition and incumbent President Nicolas Maduro claimed victory in a nation that helped found the Organization of the Petroleum Exporting Countries (OPEC), but since has faded from the global oil sector.
Maduro claimed another term as the head of the Venezuelan government over the weekend, though opposition leader Edmundo Gonzalez and his supporters believe they won the contest with a majority of the votes. Backers of the opposition are calling on Maduro to release detailed polling results to confirm his claims to victory.
Maduro's socialist regime is also suspected of manipulating the results, and Reuters points to the Venezuelan Conflict Observatory, an election monitor, as reporting 187 protests across 20 of the nation's 23 states with "numerous acts of repression and violence."
Tamas Varga, an analyst at London oil broker PVM, told Industrial Info he's not all that surprised by the competing narratives: "The obviously flawed election result does not come as a surprise; protests do."
So far, any impact on the commodities market has been muted. The price for Brent crude oil, the global benchmark, lost its grip on the $80 mark more than a month ago given that various geopolitical risks, including in Venezuela, have yet to threaten the sector directly.
Venezuela was among the founders of OPEC after the Arab Oil Embargo of the 1970s, churning out some 3.5 million barrels per day (BBL/d) of oil at its peak. It once was a major crude oil exporter to the U.S., where much of the refinery sector is designed to process the heavier types of oil such as that found in Venezuela.
Secondary sources reporting to OPEC economists put Venezuelan oil production at 851,000 BBL/d for June. OPEC found there may be three rigs working in the nation, compared to the 85 reported in Saudi Arabia.
Venezuela relies heavily on hydroelectric power to run its economy, though aging infrastructure leaves the power supply sporadic at best. The refinery sector also is crumbling, leading to long queues at the filling station. Inflation is running at about 100%.
Elsewhere, the rise of neighboring Guyana as a major producer has rattled Venezuela's confidence. Venezuela considers parts of the country its own, clinging to a century-old dispute over the Essequibo region in Guyana. Both countries have increased the troop presence along the shared border.
Led by Exxon Mobil Corporation (NYSE:XOM) (Spring, Texas), Guyana's production is accelerating in the offshore Stabroek block. Several phases already are in production, and new developments such as Hammerhead could bring Exxon's total output to as much as 1.5 million BBL/d.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can learn more about the Hammerhead FPSO (floating production storage offloading) development in a detailed project report.
While the prospects for a broader regional conflict are uncertain, Maduro's government could lash out if it finds itself backed into a corner.
Western-backed sanctions, imposed largely in response to the lack of democratic controls, have limited Venezuela's options in the international arena. Venezuela has resorted to shipping its oil products to rival Cuba on vessels not broadcasting their signals, in an effort to escape sanctions pressure.
In April, the U.S. opted not to extend sanctions relief to Venezuela for violating the Barbados Agreement, a document signed by Caracas and the opposition that called for bipartisan dialogue, as well as free and fair elections.
"By engaging in repression and electoral manipulation, and by declaring a winner without the detailed precinct-by-precinct polling results, or actas in Spanish, to support a claim, Maduro representatives have stripped the supposed election results they announced of any credibility," a White House official said Monday on background.
Should that pattern continue as the election crisis evolves, expect tougher action from Western powers. That, however, could push Venezuela closer to the likes of China and Russia, the latter of which has already extended congratulations to Maduro.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Maduro claimed another term as the head of the Venezuelan government over the weekend, though opposition leader Edmundo Gonzalez and his supporters believe they won the contest with a majority of the votes. Backers of the opposition are calling on Maduro to release detailed polling results to confirm his claims to victory.
Maduro's socialist regime is also suspected of manipulating the results, and Reuters points to the Venezuelan Conflict Observatory, an election monitor, as reporting 187 protests across 20 of the nation's 23 states with "numerous acts of repression and violence."
Tamas Varga, an analyst at London oil broker PVM, told Industrial Info he's not all that surprised by the competing narratives: "The obviously flawed election result does not come as a surprise; protests do."
So far, any impact on the commodities market has been muted. The price for Brent crude oil, the global benchmark, lost its grip on the $80 mark more than a month ago given that various geopolitical risks, including in Venezuela, have yet to threaten the sector directly.
Venezuela was among the founders of OPEC after the Arab Oil Embargo of the 1970s, churning out some 3.5 million barrels per day (BBL/d) of oil at its peak. It once was a major crude oil exporter to the U.S., where much of the refinery sector is designed to process the heavier types of oil such as that found in Venezuela.
Secondary sources reporting to OPEC economists put Venezuelan oil production at 851,000 BBL/d for June. OPEC found there may be three rigs working in the nation, compared to the 85 reported in Saudi Arabia.
Venezuela relies heavily on hydroelectric power to run its economy, though aging infrastructure leaves the power supply sporadic at best. The refinery sector also is crumbling, leading to long queues at the filling station. Inflation is running at about 100%.
Elsewhere, the rise of neighboring Guyana as a major producer has rattled Venezuela's confidence. Venezuela considers parts of the country its own, clinging to a century-old dispute over the Essequibo region in Guyana. Both countries have increased the troop presence along the shared border.
Led by Exxon Mobil Corporation (NYSE:XOM) (Spring, Texas), Guyana's production is accelerating in the offshore Stabroek block. Several phases already are in production, and new developments such as Hammerhead could bring Exxon's total output to as much as 1.5 million BBL/d.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can learn more about the Hammerhead FPSO (floating production storage offloading) development in a detailed project report.
While the prospects for a broader regional conflict are uncertain, Maduro's government could lash out if it finds itself backed into a corner.
Western-backed sanctions, imposed largely in response to the lack of democratic controls, have limited Venezuela's options in the international arena. Venezuela has resorted to shipping its oil products to rival Cuba on vessels not broadcasting their signals, in an effort to escape sanctions pressure.
In April, the U.S. opted not to extend sanctions relief to Venezuela for violating the Barbados Agreement, a document signed by Caracas and the opposition that called for bipartisan dialogue, as well as free and fair elections.
"By engaging in repression and electoral manipulation, and by declaring a winner without the detailed precinct-by-precinct polling results, or actas in Spanish, to support a claim, Maduro representatives have stripped the supposed election results they announced of any credibility," a White House official said Monday on background.
Should that pattern continue as the election crisis evolves, expect tougher action from Western powers. That, however, could push Venezuela closer to the likes of China and Russia, the latter of which has already extended congratulations to Maduro.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
