Chronicle of raw materials
Venezuela: Civil society group calls for oil sanctions to be lifted
Audio 01:46
The lifting of the American embargo would be a breath of fresh air for the Venezuelan economy plunged into an unprecedented crisis.
Oil revenues represent the majority of state revenue, more than 60% in 2022, according to government forecasts.
© REUTERS/Sumeet Mudhoo
By: Altin Lazaj
2 mins
In Venezuela, several civil society figures are asking Joe Biden for the return of Western oil companies.
Close to the opposition, they are calling for the lifting of American sanctions in order to revive the oil sector, the country's main source of income.
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Renowned economists, analysts, oil experts and trade unionists.
All signed a letter asking the American president to lift the embargo on the Venezuelan oil sector.
They estimate that oil production would increase in a few months if companies, especially American ones, could once again work in the country.
According to the signatories, the American sanctions were a failure and did not allow the ousting of President Nicola Maduro.
This call comes at a time when the United States, which imported an average of 700,000 barrels a day from Russia, is looking for other sources of supply, Washington having decreed an embargo on Russian black gold.
An American delegation even went to Caracas at the beginning of March with the aim of finding an agreement with President Maduro.
The crisis with Russia is forcing Washington to get closer to the man who was until now considered a pariah.
A breath of fresh air for Venezuela's economy
The lifting of the American embargo would be a breath of fresh air for the Venezuelan economy plunged into an unprecedented crisis.
Oil revenues represent the majority of state revenue, more than 60% in 2022, according to government forecasts.
In addition to the significant economic benefits, the increase in Venezuelan production would contribute to the stability of the price per barrel on the world market.
Venezuela indeed holds the
world's largest oil reserves.
The country now produces about 800,000 barrels a day, compared to 3.2 million barrels 13 years ago.
The oil is sold exclusively to China with discounts, the Venezuelan civil society group believes.
But getting back to that level of production will require a lot of investment because of the dilapidated state of the oil industry, experts say.
Venezuelan black gold is therefore not ready to replace Russian oil.
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United States
Venezuela
Oil