Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen's correspondent: One was killed, another injured in a raid by an Israeli drone on the city of Khiam in South Lebanon
London views possibility of setting fire to tanker in port of friendly country to Russia to damage port infrastructure, initiate an international probe: Moscow
One of London's scenarios involves setting up accident with 'undesirable' tanker in one of the bottlenecks of maritime communications: Russian foreign intelligence agency
London plans to organize major sabotage with tankers to declare transportation of Russian oil to international shipping: Russian foreign intelligence agency
UK intelligence agencies plan to use NATO allies to launch massive raid on 'Shadow Fleet': Russian foreign intelligence agency
Palestinian Ministry of Health: Two were martyred in Israeli shelling that targeted a besieged house in the town of Qabatiya in Jenin
At least 68 dead in migrant shipwreck off Yemen: IOM
Trump: We want to feed the people in Gaza, we do not want them to starve.
US President Donald Trump: We will impose sanctions on Russia if it does not end the war on Ukraine.
Israeli media: Polls show that 52% oppose Prime Minister Benjamin Netanyahu while only 29% support him.

Venezuela says industry ready for new sanctions, warns of effect on US

  • By Al Mayadeen English
  • Source: News websites
  • 16 Feb 2024 13:24
  • 1 Shares
4 Min Read

The Venezuelan oil industry is still struggling under existing and emerging US economic sanctions regardless of an increase in crude output.

  • x
  • A worker wearing a face mask amid the coronavirus pandemic waits while a tanker truck supplies gasoline to a state oil company gas station in Caracas, Venezuela, Sunday, May 31, 2020(AP)
    A worker wearing a face mask amid the coronavirus pandemic waits while a tanker truck supplies gasoline to a state oil company gas station in Caracas, Venezuela, Sunday, May 31, 2020 (AP)

The Organization of Petroleum Exporting Countries (OPEC) latest monthly report reveals that Venezuela's January crude output has increased by 14,000 barrels per day (bpd) from December reaching 796,000 bpd.

State oil company PDVSA also reported an increased figure of 841,000 bpd, up from 802,000 bpd the prior month.

However, this increase in the production outcome was not accompanied by an increase in sales but rather a 25 percent decrease in exports month-to-month in January as a result of power outages at Venezuela's main loading terminal in eastern Anzoátegui state.

Venezuela: a victim of US sanctions

Since mid-2017, Venezuela’s most important economic sector, the oil sector, has been subjected to US sanctions. The USA has implemented financial sanctions, an oil embargo, secondary sanctions, and a raft of restrictions targeting the country's main income source. 

In 2020, the crude output hit its lowest record in its history of 350,000 bpd, falling from around 1.9 million bpd before the first sanctions. Even though the industry has steadily gotten better since then, it failed to reach a 1 million bpd target.

In October 2023, the US Treasury Department released General License 44 (GL44) giving a six-month waiver on dealings with Venezuela’s energy sector, noting that the Biden administration issued the GL44 and other licenses amid the Barbados agreement between President Nicolas Maduro's government and the US-backed opposition.

Related News

Putin open to meeting Zelensky pending expert-level talks: Peskov

Pro-'Israel' Democrats breaking with Netanyahu amid Gaza war

The Treasury’s Office of Foreign Assets Control warned companies against investing in Venezuela during that authorization. In the months since, several corporations, including France’s Maurel & Prom, have expanded activity in joint projects with PDVSA, but these deals only have finite benefits for the country’s crude production.

Same old US story: a proxy in every part of the world

In recent weeks, US officials repealed a license authorizing dealings with Venezuela’s mining sector and have continuously threatened not to renew the oil and gas license as it expires in April. This comes as the US seeks to exert pressure to impose Maria Corina Machado as a candidate in this year’s presidential elections. Machado is a far-right candidate who appealed against a political ban rejected by Venezuela’s Supreme Court.

Venezuelan officials, including Oil Minister Pedro Tellechea, have stated that the industry is ready for new US sanctions, warning that this will eventually affect the US markets and supplies.

No license and the threat of secondary sanctions

Economist Francisco Rodríguez estimated that the non-renewal of GL44 would represent a blow of $1.6 billion in this year’s oil revenues, arguing that even with the waiver gone, much will be in the fate of whether the US Treasury will actively stop firms from purchasing Venezuelan crude by threatening them with secondary sanctions. 

Analysts also expect a wider output decrease if the USA also withdraws the license related to Chevron, which is a US energy giant that initiated its activity in its Venezuela joint ventures following a November 2022 sanctions waiver and a 200,000 bpd target for 2024.

An emergence of oil sanctions will stop PDVSA’s ongoing possibilities of rebuilding ventures and maintaining new customers as Indian state-owned companies ONGC and Oil India are both interested in deeper involvement in the Venezuelan oil sector. India’s multinational refiner Reliance Industries has also bought Venezuelan crude cargoes in recent weeks.

With tightened sanctions, PDVSA will be forced again to count on unreliable intermediaries, unlike the break it got during the October license allowing it to sell crude with fewer restrictions. In March 2023, Venezuelan authorities revealed a corruption scheme that cost the industry billions of dollars from unaccounted oil sales and resulted in dozens of arrests.

The expiry of GL44 could also lead to fuel deficiencies again, which prompted PDVSA to initiate swap deals with partners such as Chevron, Maurel & Prom, Spain’s Repsol, and Italy’s Eni to boost its supplies of fuel and diluents for refineries.

Even though Venezuela has tried to get help from Iran in recent years, refineries remain affected by operational hurdles and are unable to meet demand. The depletion of gasoline mainly diesel has serious consequences for electricity generation, public transportation, and agriculture.

  • United States
  • India
  • us sanctions on venezuela
  • US
  • Venezuela
  • Venezuela oil

Most Read

A rescued crew member from the ETERNITY C vessel in a video released by the Yemeni Armed Forces on July 28, 2025 (Yemeni Military Media)

Yemen Navy reveals fate of targeted Eternity C ship crew

  • Politics
  • 28 Jul 2025
An Israeli tank explodes following an ambush by al-Qassam Brigades in Gaza, Occupied Palestine, undated (Al-Qassam Military Media)

Al-Qassam strikes Israeli vehicles in Gaza, inflicts casualties

  • Politics
  • 30 Jul 2025
UAE lodges complaint against Israeli ambassador over 'misbehavior'

UAE lodges complaint against Israeli ambassador over 'misbehavior'

  • Politics
  • 1 Aug 2025
Protesters chant anti-Israeli slogans as they carry a banner that reads:" Freedom for Palestine, Alliance stop the war," during a demonstration in support of Palestinians in Gaza, outside the Israeli embassy, in Athens, Monday, June 9, 2025 (AP)

Athens mayor slams Israeli ambassador over Gaza war, graffiti claim

  • Politics
  • 3 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A member of the al-Qassam Brigades, the armed wing of Hamas, takes part in a parade as he celebrates a ceasefire agreement between Hamas and the Israeli regime in Deir al-Balah, Gaza Strip, Sunday, January 19, 2025 (AP)
Politics

Al-Qassam: We’ll allow aid to Israeli captives if Gaza siege ends

Freed Lebanese freedom fighter Georges Abdallah during an interview on Al Mayadeen, which aired on Sunday, August 3, 2025 (Al Mayadeen screengrab)
Politics

Exclusive: Resistance key to building state, Georges Abdallah says

United Nations Secretary General Antonio Guterres gives a statement about the situation in Gaza at UN headquarters, Friday, June 27, 2025 (AP)
Politics

UN warns Gaza faces water crisis, looming famine under Israeli siege

Israeli soldiers drive their armored personnel carrier along the Gaza Strip, in southern occupied Palestine, Wednesday, July 30, 2025 (AP)
Politics

Ex-Israeli general says Gaza starvation campaign isolated 'Israel'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS