CARACAS, Venezuela—For over a century, energy-rich Venezuela has benefited economically, mainly from producing crude oil. But amid a race to net zero emissions by mid-century, it must now advance natural gas and preferably renewable developments.
Venezuela is blessed with oil, gas and numerous mineral resources such as gold to steel. Due to the country’s geographic location in the northern region of South America coupled with its long Caribbean coastline, it’s in the perfect location to benefit from renewable resources, Friedrich Ebert Stiftung (FES) foundation Venezuela director Katharina Wegner told Hart Energy July 21 during an interview in Caracas.
But Venezuela needs to move forward with future renewable activities in a sustainable manner in order to transform its productive matrix.
“Venezuela’s geographic location positions the country to be an exporter of renewables including green hydrogen,” Wegner said. “The country also has potential to take advantage of bioenergy in its central agriculture regions and reduce the sector’s reliance on hydrocarbons.”
Despite holding the world’s largest oil reserves and seventh-largest gas reserves, Venezuela continues to suffer economic and humanitarian crises owing to ongoing political uncertainties.
Declining oil production and lackluster refining capacity have complicated efforts by state-owned Petróleos de Venezuela (PDVSA) to produce sufficient refined products such as gasoline or diesel to fulfill domestic demand. And U.S. sanctions imposed in 2019 aimed at toppling the government of President Nicolas Maduro have complicated the state oil producers’ plans. Recurring shortages of gasoline and diesel are frequent across the country.
Venezuela’s massive hydroelectric capacity has also been impacted over the years by a lack of investments and maintenance, though in better times it provided the country with considerable renewable energy.
Efforts to reduce diesel consumption in the food transport sector in exchange for cleaner fuel options such as compressed natural gas for vehicles have fallen short. A lack of incentives and infrastructure to support a massive buildout around the plan hurt the initiative. And Venezuela continues to flare, vent and lose gas through leakage to the tune of more than 50% of its gas production.
Venezuela’s government has labeled the adverse effects of climate change as a national priority and has plans for remedial actions with projects spanning electrical energy, biological diversity, food sovereignty, agriculture sustainability, water conservation and waste education among others.
Wegner stressed the importance of education including efforts her foundation champions across Venezuela to inform citizens about the country’s oil and gas reserves as well as the use of gas as a safer and cleaner way to generate electricity. The foundation also favors reduced use of LNG canisters or, worse, coal and wood for cooking needs, she said.
Recommended Reading
Seatrium Awarded Contract for FPSO Bound for Guyana’s Stabroek
2024-05-17 - The topsides fabrication and integration contract will be for the FPSO Jaguar, bound for the Whiptail Field in the Stabroek block offshore Guyana for Exxon Mobil.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks: Baker Hughes
2024-05-17 - The oil and gas rig count rose by one to 604 in the week to May 17.
BPX Looks to Ramp US Production Over 60% by 2030
2024-05-16 - BPX Energy is looking to boost its U.S. production over 60% by 2030 as it considers bringing online a fourth processing facility in the Permian by mid-year 2025, Clark Edwards, the company’s vice president of development, said during SUPER DUG in Fort Worth.
Empire Petroleum’s Williston Drilling Program Identifies New Zones
2024-05-16 - Empire Petroleum provided updates on its Williston Basin development drilling program in its first quarter 2024 earnings results.