Venezuelan oil sales to the US continue to decline

Venezuela's oil businesses with the United States continue to decline in terms of the volume of sales.

Preliminary statistics from the US Department of Energy show that during the fourth quarter of 2011, sales of Venezuelan crude oil averaged some 793,000 barrels per day, around 9% down compared to the same period of 2010, when oil shipments averaged 875,000 barrels of oil per day.

Figures on Venezuelan monthly oil shipments to the US this year show that the volume delivered in October was 916,000 bpd, while in November and December (up to the fourth week), there was a significant drop to 748,000 and 715,000 barrels per day, respectively.

In contrast, during October 2010 shipments averaged 883,000 barrels, while in November and December last year they averaged 910,000 and 835,000 barrels per day, approximately.

A week to the end of year 2011, preliminary figures from the US Department of Energy suggest that this year Venezuela dispatched an average of 866,000 barrels of crude oil to the US. This figure is significantly lower than the average of 987,000 barrels shipped during 2010, according to US consolidated data.

New Customers

The United States remains the main buyer of Venezuelan oil. However, Caracas' trade and political alliances with China and other countries in Asia have resulted in Venezuela turning to other markets rather than the US.

Pdvsa reported in mid-2011 that in 2010 the United States' imports of Venezuelan crude oil and petroleum products averaged some 1.24 million barrels a day. This represents about 52% of Venezuelan exports, estimated at 2.41 million barrels per day.

Venezuelan shipments of crude oil to the United States in fiscal year 2010 were the lowest in the last 21 years.

While the volume shipped to North America shrinks, oil sales to countries such as China and India are consistently growing.

In this regard, Pdvsa sent more than 380,000 barrels of crude and byproducts to those two countries during 2010.

Coupled with this, there are Venezuela's oil deliveries to China under the Chinese Fund. Since 2007, Pdvsa started to ship 100,000 barrels per day. After China expanded its financing to the Venezuelan government, shipments jumped to 230,000 barrels per day to Beijing.

Later, also in 2010, oil volumes under the Chinese Fund were expanded to 430,000, which Pdvsa must deliver as payment to the China Development Bank on behalf of Venezuela.

Providers

The latest monthly report from the Organization of the Petroleum Exporting Countries (OPEC) shows that Canada remains the largest supplier of crude oil to the US, with 2.32 million barrels a day. Canada is followed by Saudi Arabia, with 1.47 million barrels a day; Mexico, with 1.1 million barrels per day; Venezuela, with 760,000 bpd; and Nigeria, with 530,000 barrels per day.

etovar@eluniversal.com

Translated by Maryflor Suárez R.