Venezuela’s Oil Exports Drop 9% as Freight Costs Bite
Venezuela’s oil exports fell nearly 9% in September to 1.08 million barrels per day as soaring tanker costs forced traders to demand steeper discounts and delayed cargoes leaving the country. Global trading houses, including Vitol and Trafigura, pressed PDVSA for better terms as freight costs chew into margins, and tanker reroutings added to shipping delays that had already accumulated over the…
Venezuela experienced a 9% decrease in oil exports in September, reaching 1.08 million barrels per day, due to escalating tanker costs. These elevated costs led traders to negotiate more favorable terms and caused shipment delays, originating from the previous summer. Major global trading firms, such as Vitol and Trafigura, demanded improved conditions as freight expenses impacted their margins, and the rerouting of tankers contributed to the shipping delays.
Despite the overall decline, the United States increased its Venezuelan crude imports to 629,000 bpd from 553,000 bpd in the prior month. India's Venezuelan crude intake dropped to 253,000 bpd from 297,000 bpd, while European purchases plummeted to 86,000 bpd from a high of 260,000 bpd. Chevron, which transported roughly 283,000 bpd, remained relatively stable compared to August. Overall, trading firms facilitated 637,000 bpd, up from 597,000 bpd.
Venezuela produced approximately 1.2 million barrels per day in August, according to OPEC reports. However, crude inventories at the Jose export terminal remained only slightly lower in September, following elevated levels earlier in the year. These figures came to light during a week when over 250 companies visited Caracas to explore Venezuela's upcoming oil development projects.
Chevron has committed over $7 billion over five years and aims to more than double its Venezuelan production to approximately 600,000 bpd. Other companies like Eni, GeoPark, and Continental Resources are also planning new or expanded projects. According to Rystad Energy estimates, Venezuelan production could potentially reach 1.6 million bpd by 2028 and 1.8 million bpd by 2030.
However, achieving these targets will necessitate a significant increase in drilling rigs. As of August, Venezuela had only two active drilling rigs, whereas Rystad estimates that around 50 rigs will be required by 2028 and nearly 80 by 2030 to support this production growth. The export system also faces its own financial challenges, with traders requesting larger discounts to compensate for expensive freight and port congestion causing delays for months.
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