Oil-Rich Venezuela Now Only Has One Active Oil Rig
Venezuela may have the world’s largest proven oil reserves, but they’re down to literally their last oil rig when it comes to extracting it. As of May, the country has only a single active rig remaining, while they boasted 120 at their zenith.
According to WorldOil:
Crude production in Venezuela tumbled for a sixth straight month in June, underscoring the dismal state of the nation’s oil industry as U.S. sanctions batter exports and the coronavirus pummels demand.
State-owned Petroleos de Venezuela SA reported a 32% decline in June output — a reduction of almost 200,000 barrels a day compared with the previous month — according to company and oil ministry documents seen by Bloomberg. As of June 28, production stood at 422,400 barrels a day.
Venezuela now produces less fuel than they did in the 1940s. Last month they had to have Iran deliver them fuel – which is analogous to Eskimos importing ice.
As was reported last month, the situation is Venezuela has gotten so dire that they don’t even produce enough energy to produce food. As Yahoo! Finance reports:
Venezuelan farmer Roberto Latini fears his window to plant this year’s crop is quickly closing.
He’d hoped to seed corn, but couldn’t find the fuel to operate his trucks and equipment before the dry season ended. So he set his sights on rice, which can be planted even in heavy rains. Weeks later, fuel is still short and “as time goes by, it’s getting too late to sow,” Latini said.
After seven years of economic collapse, Venezuela’s crisis has entered a troubling new phase. In a nation that’s home to the world’s largest oil reserves, fuel shortages have grown so acute that fields are going bare.
Things were already bleak prior to this – and that’s putting it mildly. In just a single year from 2016-2017, nearly 75% of Venezuelan’s lost weight, averaging 19 pounds in total.
Venezuela does deserve some credit however, in that they lasted years longer than the socialists in the Capitol Hill Autonomous Zone before running out of food.