Venezuela’s Crumbling Oil Industry Is An Environmental Nightmare The near failure of the Venezuelan state, caused by the breakdown of the country’s oil industry, has triggered the second worst humanitarian crisis of the 21st century. While the collapse of Venezuela’s oil industry and what was once the richest economy in South America are well documented, there is little coverage of the immense environmental damage being caused by the decay of its energy infrastructure.
The autocratic Maduro regime is determined to squeeze whatever oil and gasoline production it can generate from Venezuela’s crumbling oilfields, corroded refineries and rusting pipelines. The situation is so dire that oil spills are a regular event in the near-failed state, especially since Washington ratcheted up sanctions, preventing Caracas from obtaining the capital required to conduct critical maintenance and overhauls. Under Maduro’s leadership Venezuela’s government, including national
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14 January 2021 16:31 GMT Updated 20 January 2021 9:37 GMT in Rio de Janeiro
Oil production in Venezuela tumbled by nearly a half last year to its lowest level since the 1940s, as the South American nation felt the effects of years of political uncertainties and chronic mismanagement of its giant reserves.
According to the latest Opec monthly bulletin published on Thursday, Venezuela produced 557,000 barrels per day of oil on average last year, down 45% from 1.013 million bpd in 2019.
Golden days gone
One of Opec’s founding members and home of the world’s largest proven oil reserves of about 300 billion barrels, Venezuela started production in 1914 when the first commercial well, Zumaque-1, was drilled in the Mene Grande field on the eastern shores of Lake Maracaibo.