Boston, MA -- (SBWIRE) -- 07/16/2012 -- BMI View: By supplying oil to Syria, Venezuela may have exposed itself to the threat of sanctions. The ill health of President Hugo Chavez ahead of October 2012 elections also generates fresh uncertainty with regard to the outlook for the country's oil production. Huge heavy oil potential and now signs that gas self-sufficiency - and more - can be achieved, means that Venezuela is in a strong position, if it can keep the political situation under control.
The main trends and developments we highlight in the Venezuelan Oil and Gas sector are:
- In February 2012, Venezuelan energy minister and Petroleos de Venezuela (PdVSA) head Rafael Ramirez said that the company had established an investment plan worth US$236bn for the 2013 to 2015 period. In 2011, spending was US$10bn, well below a targeted US$18.4bn of investment. In 2012, Ramirez said he anticipated capital expenditure (capex) of US$15bn. PdVSA has vowed to end the year producing 3.5mn barrels per day (b/d) of oil, a rise of 0.5mn b/d on 2011 levels. The increase would come mainly from projects in the Orinoco oil belt, where the company plans to produce 470,000b/d.
- In December 2011, PdVSA signed a contract with Italy's Eni and Spain's Repsol-YPF to buy gas from the Perla field in the Gulf of Venezuela, the country's largest gas discovery. Eni and Repsol will each hold a 32.5% stake in the field when production begins, with PdVSA holding the remainder, according to an e-mailed statement from Repsol. The companies plan to produce an annualised 3.1bn cubic metres (bcm) in 2013 and eventually reach a maximum capacity of 12.4bcm in 2019, minister Rafael Ramirez said.
- Crude oil and liquids production in 2011 is thought to have changed little from the level recorded a year earlier, with BMI assuming an average of 2.41mn b/d. By 2016, there is scope for 3.25mn b/d of supply thanks to heavy oil schemes, with production capable of exceeding 4.00mn b/d by 2020. In terms of demand, the estimated 0.79mn b/d of consumption in 2011 is set to reach 0.95mn b/d by 2021. Oil export potential will therefore climb from 1.62mn b/d in 2011, through 2.39mn b/d in 2016, to almost 3.10mn b/d by 2021.
- Oil production from joint venture (JV) projects between PdVSA and China National Petroleum Corporation (CNPC) in Venezuela will reach 1.1mn b/d by 2014, according to Ramirez. He said that this will be 10 times greater than current output of 112,000b/d. President Chavez has signed a contract to secure a US$4bn loan from the China Development Bank to boost the oil output, Ramirez added.
- Thanks largely to the Perla gas sales agreement mentioned above, Venezuela should see production reach 33bcm by 2016, climbing further to 44bcm by 2021. While there is scope for net export capability, we are assuming domestic demand will consume all of the available gas, but that Venezuela will no longer be a net gas importer beyond 2013.
View Full Report Details and Table of Contents
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Energy research reports at Fast Market Research
You may also be interested in these related reports:
- Northern Oil & Gas, Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q1, 2012
- Global Oil and Gas Survey 2012-2013: Market Trends, Buyer Spend and Procurement Strategies in the Global Oil and Gas Industry
- Global Oil and Gas Survey 2012-2013: Market Trends, Marketing Spend and Sales Strategies in the Global Oil and Gas Industry
- Quicksilver Resources Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q1, 2012
- Bellatrix Exploration Ltd. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2011
- PetroSands Resources (Canada) Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2011
- Rex Energy Corporation Oil & Gas Exploration and Production Operations and Cost Analysis - Q1, 2012
- Trinidad & Tobago Oil & Gas Report Q2 2012
- China Oil & Gas Report Q2 2012
- Apco Oil & Gas International Inc. Oil & Gas Exploration and Production Operations and Cost Analysis - Q2, 2011