Venezuelan oil sales to the United States down 12.3 percent

Despite the government plans to diversify oil markets, Venezuela has not been able to replace the United States as the largest buyer of Venezuelan oil (File Photo)

Energy
The new policy announced by US President Barack Obama to reduce dependence on oil and promote alternative energy sources will make an impact on Venezuela, which sells nearly half of its crude oil to the United States.

Obama announced in a speech before the Congress last Tuesday night that his country's stimulus plan will double the production of renewable energy over the next three years, with the related investment amounting to USD 15 billion per year.

The amount will serve to develop new technologies such as solar energy and wind power, advanced biofuels, clean coal and cars and trucks that use fuel more efficiently.

Although the United States is one of the world's largest oil producers, large domestic consumption forces the country to import more than 60 percent of the fuel it requires to keep the industries and vehicles moving.

The US is the largest importer of Venezuelan oil, with a total of 1.006 million barrels per day, according to the Energy Information Administration (EIA), an arm of the US Energy Department. Venezuela is the fourth largest supplier of oil to the US, behind Canada, Saudi Arabia and Mexico.

According to data disclosed by the US energy agency, Venezuelan exports to the United States fell 12.3 percent between December 2007 and December 2008. In December 2007, Venezuela exported 1.148 million per day to the United States.

Meanwhile, Venezuela's oil derivative shipments to the United States have increased in the past year, from 210,000 bpd in 2007 to 230,000 bpd in December 2008. This represents a 9.5 percent growth.

A changing market
Although the markets for Venezuela's crude oil and oil derivative exports have changed, the US continues to top the list of the major buyers of Venezuelan oil. According to state-run oil company Petróleos de Venezuela's financial report of operations, in January-September 2008, exports of crude oil to Asian countries increased by 73 percent, as compared to the same period in the previous year.

Despite increased exports to Far East countries, Venezuelan oil sales (including oil derivatives) to Asia stood at 435,000 bpd, which is by far a lower amount than Venezuela's exports to the US market. In fact, Venezuelan shipments to the US more than double exports to Far East countries, which have become Venezuela's third largest oil market.

According to Pdvsa's report, there are other countries that gained ground as importers of Venezuelan oil. In January-September last year, the Caribbean countries bought 542,000 bpd.

The behavior of oil exports in the past year shows that President Hugo Chávez's plans to reduce oil dependence on the US have been successful. However, there is still a long way to go for other countries to overthrow the US as the main buyer of Venezuelan oil.
stejero@eluniversal.com