Venezuela: A Rapid Decline in Oil Production Raises the Risk of More Chaos

Venezuelan crude oil production has fallen by two-thirds over the past 18 months, declining by about 1 million barrels per day. Because oil production is essentially Venezuela's only source of export and fiscal revenue, the resulting drop-off in oil income will create even more chaos in the country as its elites jockey for control of other sources of funds. A May 14 report from the Argus commodities media service now says crude oil production by Venezuela's state-owned energy company Petroleos de Venezuela (PDVSA) has dropped to a meager 500,000 barrels per day this month. ...