The implications for Colombia of the oil crisis in Venezuela



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Despite having the largest reserves in the world, the political crisis caused the production of the neighboring country to fall to its lowest level.

Venezuela has the largest oil reserves in the world, 296 billion barrels. But its production, historically high and close to 3 million barrels per day, fell to the lowest point in its history, of 1,200.00 barrels per day, of which exports 420,000 to the United States.

"Today Venezuela's production is insignificant in the world market.You see, yesterday, Donald Trump said" I will block all PDVSA accounts "and today oil prices fell, would be expected to be the opposite & # 39; "says analyst Eduardo Pizano.

Some analysts in Venezuela say that the country will lower its production to around 700 thousand barrels per day.

Economist and risk-qualifier Leonardo Buniack points out that "the Venezuelan oil industry is going through a perfect storm in the international market, prices are dropping and production is dropping to such a level that Venezuela could stop being a net exporter of oil in 2019 or early 2020. "

Colombia had a record production of one million barrels, although today it produces 900 thousand barrels per day. It is still far from what Venezuela produces, despite its current crisis.

That is why industry experts urge Colombia to seize the moment to recover, before Venezuela.

"Until the problem is solved in Venezuela, the country can receive investments from the sector because definitely in a scenario where Venezuela reopens its borders to private investment would take away all possibilities of the investment to reach Colombia," says Julio. Cesar Vera, president of Acipet.

Is this oil crisis in Venezuela benefiting Colombia?

"Colombian exports to the United States have already exceeded those of Venezuela last year, for example, at 470,000 barrels per day, slightly more than the barrels that Venezuela sends, but it is already at those levels," says Germán Espinosa , president of Venezuela. Campetrol.

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

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