Venezuela to Increase Oil Production
Last year, a U.S. Geological Survey determined Venezuela’s Orinoco Oil Belt holds an estimated 513 billion barrels of recoverable heavy crude. (image: topnews.in)
Venezuela’s leading energy officials announced the government is hammering out long-term plans to drastically boost oil output while diversifying its struggling economy, according to an Associated Press report.
Last month, OPEC’s latest study revealed Venezuela had overtaken Saudi Arabia as the country with the most proven crude oil reserves – yet it doesn’t even rank on the list of the world’s top ten oil producing and exporting countries. However, according to Venezuela’s Energy Minister Rafael Ramirez, that may be about to change. Last Friday Ramirez announced the country’s new goal is to raise production from its current 3 million barrels a day to 4 million by 2015.
The government seeks to boost output from the Orinoco Oil Belt, a rapidly developing region with huge deposits of extra-heavy crude, from 1.1 million barrels a day to 3.9 million. In the next 10 years or so, Ramirez anticipates an influx of around 100,000 new workers to the region, and with that will come expanding infrastructure of schools and housing, and hopefully, a stronger, more stable economy.
Venezuelan President Hugo Chavez commented that OPEC quotas will probably be adjusted to account for the country’s growing reserves. Ramirez said it’s too early to gauge OPEC’s reaction, but he’ll be ready to discuss it when the group raises the subject.
“It’s an issue that we aren’t going to discuss for now, as long as there is no need to discuss it. Now isn’t the time to do it still, because we’re determined to keep the price of oil stable,” Ramirez said. “It’s a new frontier that’s opening up.”
