Venezuela energy storage investment

Could Venezuela re-open its energy sector?

This ability to sell its oil to a top market once made it one of the richest South American countries, all centered on an oil production of more than 3.4 million barrels per day (bpd). This history could enable Venezuela to re-open its energy sector to the investment world, potentially attracting billions of dollars, if its leadership changes.

How does Venezuela's economic policy affect energy consumption?

Venezuela's restrictive economic policies (Figure 3) have resulted in a decrease in inflation-adjusted GDP per capita, which has led to a decrease in energy consumption (Figure 4). Venezuela has the refining capacity to meet its domestic demand, but the country’s refineries are in poor condition.

What changes are necessary for the future of the Venezuelan energy industry?

The analysis suggests that great changes are necessary for the future of the Venezuelan energy industry with a new public policy agenda mainly driven by private investments, while the energy transition has already started.

Is Venezuela's oil industry the best chance to repair the country?

(Cardenas is also a board director at Venezuelan energy company PDVSA Ad Hoc, overseeing the protection of PDVSA’s assets abroad.) Opposition leaders in Venezuela have openly identified the oil industry as its best chance for repairing the country, should they gain power.

Will Venezuela be able to extract oil through a new regime?

Venezuela is also facing the competition of other opportunities, even under a new regime. The costs and risks of extracting oil in Venezuela means it will have to offer lower prices to make such an investment attractive. And this strategy for rescuing Venezuela through its oil would come when the rest of the world is talking about how to burn less.

How much money does Venezuela make from oil exports?

The country that once earned $90 billion a year from oil exports now only brings in about $2.3 billion. A 2019 decision by the U.S. to levy sanctions on Venezuela’s exports has made a bad situation worse. Oil makes up about 99 percent of the value of its exports.