Local political pathology aside, the nub
of the problem is that for over a decade there has been no significant
investment in the modernisation of Venezuelan crude production; and physical
depreciation of installations has not been made good. As a result the volume of
crude production is falling inexorably (and not for any show of adherence to
Opec ceilings), and the process is now one of circular and cumulative
causation: as the revenues of state oil company PDVSA contract, keeping up its
shrinking contribution to the national budget squeezes further any residual
funds that might be available for plant upkeep, let alone renewal of
installations. What is to be done? More… 
Wednesday, November 8, 2017
Modernising Venezuela’s oil infrastructure
Local political pathology aside, the nub
of the problem is that for over a decade there has been no significant
investment in the modernisation of Venezuelan crude production; and physical
depreciation of installations has not been made good. As a result the volume of
crude production is falling inexorably (and not for any show of adherence to
Opec ceilings), and the process is now one of circular and cumulative
causation: as the revenues of state oil company PDVSA contract, keeping up its
shrinking contribution to the national budget squeezes further any residual
funds that might be available for plant upkeep, let alone renewal of
installations. What is to be done? More… 
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