Venezuelan state oil company default is inevitable

With Venezuela’s economic dilemma, Venezuelan state oil company PDVSA, the country’s largest foreign exchange source is also plunged into a debt default. By October and November 2017, PDVSA had a $ 3.2 billion debt due, but its cash was insufficient, plus the United States increased support for Venezuela, and the default became inevitable.

Venezuelan oil company (PDVSA) default seems to have been inevitable, which the global crude oil market, is a big heavy event.

For Venezuela, increasing crude oil production is a solution to the crisis. Since 2005, the country has planned to increase its crude oil production to 500 million barrels / day, but this goal has not been achieved. In the first seven months of 2017, the country’s average crude oil production was only 1.7 million barrels per day.

In contrast, the United States, in the past five years dependent on a large number of small-scale private shale oil companies, its crude oil production from 4.3 million barrels / day increased to 950 million barrels / day, Venezuela if the same approach, the output increased to 250 Million barrels / day is entirely possible, but it requires the government’s protection of private enterprises and political stability.