WPB: Venezuela’s critical oil sector is deteriorating, and the root cause extends far beyond internal issues like broken-down facilities or ongoing administrative failures. The country finds itself trapped in a complex mix of international pressure, economic sanctions, and political urgency—all converging to isolate Caracas as the U.S. tightens restrictions.
In a recent diplomatic mission to Beijing, Vice President Delcy Rodríguez made a pressing appeal: Venezuela needs China to boost its oil purchases immediately. With Washington pushing foreign companies such as Chevron out of Venezuela and imposing heavy penalties—including 25% tariffs—on anyone engaging in its oil trade, the government is making a last-ditch effort to hold on to its final major buyer.
However, China’s response has been less than enthusiastic. Reports suggest that Chinese authorities are demanding deeper price cuts and are pushing to revise existing agreements. Being the only significant customer remaining gives them considerable leverage to negotiate tougher terms.
Meanwhile, Venezuela’s oil export levels are in freefall. Shipments have already plunged by nearly a fifth as PDVSA halted Chevron’s scheduled loadings prematurely. Desperate tactics are becoming more visible, with disguised oil tankers—dubbed “zombie ships”—attempting to bypass international tracking systems. Such maneuvers underscore the gravity of the situation.
Although China remains Venezuela’s biggest creditor and continues to receive oil as loan repayments, even that flow is waning. Output at the once-prominent Sinovensa joint venture between China’s CNPC and PDVSA has tumbled to 103,000 barrels per day, a stark drop from 160,000 in 2015.
Adding to the pressure, the U.S. administration is now warning that countries persisting in Venezuelan oil trade could face additional penalties. This raises the stakes for China, which might become the next target of secondary sanctions. For Venezuela, losing its last dependable oil client could deal a devastating blow. The nation’s foreign reserves are vanishing, its currency is nosediving once again, and inflation continues to rise sharply.
Although Rodríguez described her meetings in China as “confidential” and expressed satisfaction, observers view the trip as a desperate gamble to rescue a collapsing lifeline.
By Bitumenmag
Oil, Gas, Bitumen
If the Canadian federal government enforces stringent regulations on emissions starting in 2030, the Canadian petroleum and gas industry could lose $ ...
Following the expiration of the general U.S. license for operations in Venezuela's petroleum industry, up to 50 license applications have been submit ...
Saudi Arabia is planning a multi-billion dollar sale of shares in the state-owned giant Aramco.
