For months we have been hearing about how the country was producing over 3 million barrels of oil a day under the revolutionary PDVSA and how those 18,000 fired workers were not needed and how international reserves were recovering. Any doubters were always criticized as sore losers who did not know better. Whenever any international agency suggested Venezuela or PDVSA were producing less than the 3 million barrel figure, the Vice-President or the Minister of Energy or the President of PDVSA would give a press conference and say that there was obviously a political motivation in the announcements and that Venezuela had indeed been producing 3.2 million barrels of oil a day ever since late March of this year. The former workers of PDVSA under their umbrella organization “Gente del Petroleo” have been saying all along that this was not true. But then, peculiar things began happening, the Central Bank said it could not publish numbers until PDVSA gave it numbers, that the numbers did not add up, then Chavez said that the country was producing 2.3 million barrels of oil in a Freudian slip or excess talking by him. Finally, the Wall Street Journal wrote an article confirming that production indeed was at best 2.5 millions barrels of oil a day.
To put things in perspective, before the December strike, the country was producing roughly 2.8 million barrels of oil a day. Now here in this link you will find the smoking gun of the big lie by the Chavez administration, the presentation by PDVSA Western Manager Felix Rodriguez to the Board of Directors of the company on the real status of production in the west. Among other pearls it says:
-A continuous decline in crude oil production due to the absence of generation/rehabilitation of wells/optimization and maintenance of the installations (loss of 560 million barrels of oil a day). Now, let’s stop right here. If the country was producing 2.8 million and your remove 560 million barrels it will be difficult to produce 3 million barrels of oil a day, no? What liars!
-The process of extracting LNG continuous to be limited due to the unstable operation of 2 of the six plants….
-The volume and quality of gas to the internal market remains limited to the lack of gas (50%)
-The Olefin II plant continues to operate at between 50-60% of its capacity since there is no ethane.
Wow! This is the “Revolutionary PDVSA” that was working normally according to all the big liars!!! This is a revolution? This is the destruction of PDVSA for the pseudo revolution’s sake. What a shame!
The rest of the presentation simply quantifies the first slide, until, you get to the last slide where it says that 2 of the 23 drills are down, but 21 of the 22 subsurface machines were not working.
The question is: Should we then believe the fiscal numbers?