BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Oil

CERAWeek: PDVSA sanctions intended to prevent further decline of Venezuela oil sector: US official

Oil

Will Venezuela’s oil sector ever recover?

Oil

Platts Rigs and Drilling Analytical Report (RADAR)

Natural Gas | Oil | Refined Products | Shipping | Marine Fuels | Tankers

Bunker and Residual Fuel Conference, 16th Annual

Oil

PDVSA slashes April crude to India's Reliance by 40% to 180,000 b/d

CERAWeek: PDVSA sanctions intended to prevent further decline of Venezuela oil sector: US official

Houston — US sanctions on PDVSA, which Trump administration officials estimate could cut oil Venezuelan output by roughly 600,000 by the end of 2019, were designed to prevent further damage to the Venezuela's oil industry, Francis R. Fannon, assistant secretary for the US State Department's Bureau of Energy Resources, said Wednesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

"Our sanctions are targeted in a way and they're structured in a way to preserve the assets of Venezuela," Fannon said in an interview with S&P Global Platts on the sidelines of CERAWeek by IHS Markit. "We certainly don't want to see them deteriorate."

If sanctions are lifted, which the US says is only possible if Venezuelan President Nicolas Maduro leaves office, analysts say it will take several years and billions of dollars in foreign investment to return oil output to levels seen even in early 2018.

"This is not reviving a field, you're almost rebuilding an industry," Ashok Belani, executive vice president of technology with Schlumberger, said Tuesday at CERAWeek. "That's a lot of work before you get that first uptick."

This week, the US Energy Information Administration forecast that Venezuelan crude output fell below 1.1 million b/d in February, down from 1.6 million b/d in February 2017 and 2.3 million b/d in February 2016.

S&P Global Platts Analytics forecasts that US sanctions will cause Venezuelan crude output, which averaged 1.2 million b/d in January, to fall to 825,000 b/d in the fourth quarter of 2019 and then fall further to average 750,000 b/d in 2020.

On Wednesday, Fannon put the blame for the decline squarely on Maduro.

"He's done it through socialist policies, utter mismanagement and theft," Fannon said. "The Maduro regime has looted PDVSA. Only until he leaves can we can start to really resuscitate that engine of productivity for the country."

Fannon said the US is working with foreign allies who have recognized Juan Guaido, self-declared interim president of Venezuela, as the nation's legitimate president, to also halt purchases from PDVSA. Fannon declined to comment on the countries involved in those talks or on the potential timeline for future sanctions efforts.

"I don't know if anyone assumed it would be quick, but I think the level of commitment from the international community illustrates a sense of resolve, that we are linking arms and want to see this [transition] happen," he said.

-- Brian Scheid, brian.scheid@spglobal.com

-- Edited by Jennifer Pedrick, newsdesk@spglobal.com