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Implications for Colombia of the oil crisis in Venezuela

Despite the presence of the largest reserves in the world, the political crisis has reduced production in the neighboring country to the lowest level.

Venezuela has the world's largest oil reserves – 296 billion barrels. But its production, historically high and close to 3 million barrels per day, fell to the lowest point in its history – 120,000 barrels per day, from which it exports 420,000 to the United States.

“Today, Venezuela’s production is insignificant on the world market. You see, yesterday Donald Trump said: “I’m going to block all PDVSA accounts,” and today oil prices have fallen, you can expect everything to be the other way around, ”said analyst Eduardo Pisano.

Some analysts in Venezuela note that this country will reduce its production to approximately 700 thousand barrels per day.

Economist and risk qualifier Leonardo Buniak points out that “the Venezuelan oil industry is experiencing a perfect storm in the international market; prices are falling, and production drops to such a level that Venezuela may cease to be a net exporter of oil by 2019 or early 2020. "

Colombia had a production record of one million barrels, although today it produces 900,000 barrels per day. This is still far from what Venezuela is producing, despite the current crisis.

That is why industry experts ask Colombia to seize the moment for recovery before Venezuela does.

“As long as the problem is not solved in Venezuela, the country can receive investments from the sector, because, of course, if Venezuela opens its borders to private investment, it will deprive all investment opportunities reaching Colombia,” says Julio . Cesar Vera, president of Acipet.

Does this oil crisis in Venezuela benefit Colombia?

“Colombia’s exports to the United States have already exceeded Venezuela’s exports last year, for example, by 470,000 barrels per day, which is slightly more than Venezuela sends, but at these levels,” says Herman Espinosa, president of Campetrol.

Meanwhile, US security adviser John Bolton said in an interview with Fox News that the overthrow of the Venezuelan government represents a business opportunity in the region for his country.

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