As Oil-Rich Venezuela Breaks-Down, Gasoline Shortages Ravage the Country By Carlos Camacho Latin American Herald Tribune March 22, 2017
Gasoline shortages in the country with the biggest oil reserves in the world
CARACAS -- Motorists in placid Barquisimeto, in Central Venezuela’s Lara state, are being told at the pump that they will only get 20 liters of the cheapest gasoline anywhere in the planet, because of “rationing”.
Local newspaper “El Impulso” quotes a cab driver that had to get up at 4 a.m. Monday, only to search till 7 am to find a working gas station. Then and there he was given the news: only 20 liters of gasoline, less than what a Ford SUV can accommodate in its tank. “Well, this is not fair, I drive a taxi, if I can’t get gasoline I can’t work, and if I don’t work I don’t eat. So tomorrow I need to come by again, endure the same line, again, to load up on gasoline,” said the man, identified as Aldhit Mendoza in the article. “This is all going to hell”, he added.
Venezuela has the largest oil reserves in the world, according to the U.S. Geological Survey, state oil company PDVSA and oil producers organization OPEC. And yet, gasoline shortages and rationing have become the norm. For men of a certain age, the gas lines outside stations look like a throwback to 1970’s America during the oil embargo, not at all what you would expect to see in an oil-rich country.
Gas stations are under state control since the 2006-2007 nationalization. And while prices were raised last year from being the cheapest in the world to still being the cheapest in the world (and still a huge money-loser for PDVSA), availability has done nothing but go down.
Some gas stations have been eliminated. Others only open during the daytime, citing security concerns in the country with one of the highest murder rate in the world. Sometimes only “regular”, 91 octane gasoline is available. The most used fuel in Venezuela (according to the Oil Ministry), 95 octane or “super", is becoming harder and harder to find.
After a major tragedy at the country's largest refinery Amuay in 2012, Venezuela stopped making gasoline almost completely, as key processing units were heavily damaged (and have still not been made fully operational). PDVSA found itself in a new position: it had to import gasoline and/or blending components, as blending them for gasoline was about the only thing that could still be done at Amuay.
Today, PDVSA said that the 645,000 barrel per day (bpd) refinery had a small fire, but reported that the "Amuay refinery continues to operate without any problems."
One week ago, oil union official Ivan Freites said that Amuay was only processing 300,000 bpd of its 645,000 per day capacity, with Puerto La Cruz at 90,000 bpd of its 195,000 bpd capacity, Cardon at 100,000 bpd of its 305,000 bpd capacity, El Palito at 40,000 bpd of its 127,000 bpd capacity, and all alkylation plants down.
As a result, the shortages seem to be taking place all over the country. Respected broadsheet daily newspaper “El Nacional” reported long lines and shortages in gold-rich Bolivar state as well.
Bolivar is one of the states that contains the “Faja Petrolifera del Orinoco”, or Orinoco River oil belt, the largest concentration of oil known to man. In 2013, after Chavez, the mentor and predecessor of embattled Venezuelan President Nicolas Maduro, died, PDVSA changed the Faja’s name: Now they call it “Faja Petrolifera Hugo Chavez.”
Oil union leader Frietes reports that Venezuela refineries currently only had about 2 days of oil inventories. They normally have 15.
|