Authors:
Luis Alberto López Rafaschieri and José Alberto López Rafaschieri
www.morochos.net
For decades, Venezuela has been shaping an energy ideology based on the assumption that Venezuelan oil is a strategic resource for the stability of the global economy. A notion that has been taken to extremes during the presidency of Hugo Chavez.
However, with a few simple calculations, we can demonstrate the error of those who believe that without Venezuelan oil the system would collapse.
According to the most optimistic estimates, Venezuela exports about 2 million barrels of oil a day, but the world consumes, according to OPEC, 83 million bpd. From which it follows that Venezuela covers only 2.4% of world oil demand.
And if we talk only about the United States, Venezuela's oil exports to that country reach approximately one million b/d. That is to say 4.8% of the 20.7 million barrels consumed daily by the US.
So, where is the relentless dependency of which Venezuelan politicians speak of? if statistically, Venezuela's energy exports are so small that the global economy, and the United States, could continue to function perfectly even if it received no Venezuelan oil.
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Very good article, you might also comment on the quality of Crude the the US imports from Venezuela. There are only a few countries whose refineries can process much of this quality crude. If not imported by US, Venezuela would have no market for much of their crude, receive.
ReplyDeleteRon
Well in all reality a drop in supply of oil by 2% may increase the price of oil by more than 5% which would drastically effect the market. However in order for Venezuela to effect the overall economy of the U.S. or the world they would destroy their own economy in the process, or whatever is left of it. I would assume that just the realistic threat of Venezuela cutting their supply of oil by half would drive up the price of oil by $10-20 a barrell. Problems in smaller oil exporting countries such as Nigeria have driven up the price of oil by a couple of dollars in the past. Trevor Haggett
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