Venezuela is currently feeling the awful effects of lower oil prices. The Organization of Petroleum Exporting Countries (OPEC) released data showing Venezuela has recently been hit with a decline in oil production. According to an article written by Virginia Lopez, “Venezuela suffered it’s largest monthly oil-production decline in a decade.”
Venezuela’s oil production has not only helped lift the nation out of poverty, but has also helped to raise the wealth of it’s citizens. Unfortunately the plummet of oil prices causing a drop in production could bring on future troubles for the citizens of Venezuela.
Venezuela imports 95% of it’s consumables, and according to expert Norka Luque with oil being it’s main export, a drop in oil prices means a hefty drop in revenue.
May’s OPEC report showed Venezuela’s production dropped by 120,000 barrels a day. That total is explained by Luque to take the nation’s production down to 2.37 million barrels a day (MBD). In February, Venezuela reported 2.52 MBD. Five years ago showed an average of a little over 3 MBD.
The drop in production not only causes problems for Venezuela’s revenue, but also it’s citizen struggling to cope with an economic disaster.