Venezuela’s Oil Exports Rise Despite Political Instability

Despite political instability and changes to the U.S. sanctions regime, Venezuela’s oil exports rose by 10.5% last year. Partners of the state oil company PDVSA took more cargoes under licenses granted by Washington, contributing to the increase in exports.

Political Landscape

As President Nicolas Maduro prepares to begin his third term in office following disputed election results, the OPEC country’s oil exports have risen for a second consecutive year, providing much-needed revenue for economic growth.

U.S.-sanctioned PDVSA and its joint ventures exported an average of 772,000 barrels per day last year, the highest since 2019 when energy sanctions were initially imposed by Washington. However, the gains in exports could face challenges with the incoming administration of President-elect Donald Trump, who has been known for imposing strict sanctions on Venezuela.

Export Markets

Venezuela’s oil exports to the U.S. increased by 64% last year, reaching around 222,000 barrels per day, making it the country’s second-largest export market behind China, which received 351,000 barrels per day. European producers, including Eni, Repsol, and Maurel & Prom, also saw a lift in exports to Europe, nearly tripling to approximately 75,000 barrels per day.

Exports to India experienced a significant increase from 10,300 barrels per day in the previous year to 63,115 barrels per day in 2024. However, exports to Venezuela’s political ally, Cuba, decreased due to the country’s severe energy crisis.

Challenges and Production

Despite the rise in oil exports, Venezuela faced challenges with frequent refinery outages last year. Monthly exports declined in December due to operational problems at one of PDVSA’s crude upgraders. The country’s crude production also increased by 17% in the first 11 months of 2024, indicating a positive trend in production.

Overall, Venezuela’s oil exports finished 2024 with a gain, showcasing resilience in the face of political and economic challenges. The country’s ability to navigate through sanctions and maintain export levels demonstrates its significance in the global oil market.

As Venezuela continues to grapple with political uncertainties and economic hardships, the resilience of its oil industry remains a key driver of revenue and economic stability.