Venezuela defends oil output figures

OPEC member Venezuela accused the Paris-based International Energy Agency of damaging its reputation as a reliable oil supplier by questioning Venezuela’s crude production figures.

Energy Minister Rafael Ramirez insisted that Venezuela, the world’s fifth-largest oil exporter, is producing 3.1 million barrels of crude a day, exceeding its OPEC quota of 2.9 million barrels per day. It also provides about 14% of US oil supplies.

Private analysts have suggested that Venezuela has inflated production figures since an oil workers strike in December 2002-February 2003 that failed to oust President Hugo Chavez.

In a sharply worded statement, Ramirez said late yesterday that “the International Energy Agency is, precisely, our opponent in OPEC.”

“It is an association of consuming nations, it represents the interests of the great societies and consuming countries and, of course, it always carries out a strategy of weakening the producing countries and OPEC,” Ramirez said.

The IEA is the energy watchdog for wealthy oil-importing countries. Although it generally avoids forecasting prices, it suggested strongly yesterday that there was little reason for consumers to expect lower prices any time soon, partly because of uncertainties about supplies from Iraq, Nigeria and some other large producers.

Venezuelan newspapers quoted IEA director Klaus Rehaag as saying that Venezuela’s oil industry was suffering from political instability and lack of investment.

The IEA was not immediately reachable for comment on Ramirez’s statement.

Analysts have said that production is closer to 2.5 million barrels a day. They cite alleged lack of investment after the strike and lost expertise.

Chavez consolidated government control of the semiautonomous state oil monopoly Petroleos de Venezuela SA by dismissing half its 38,000-strong work force during the strike. His government insists that it has become a more streamlined and efficient enterprise.

Venezuela earned more than $20bn (€16.2bn) in oil revenues last year and has benefited from high oil prices this year.

PDVSA has created a 2bn (€1.6bn) fund to pay for a host of government social programs under Chavez, who faces a recall referendum on August 15. All of PDVSA’s foreign income used to go directly to the Central Bank.