Better Burned Abroad: Exporting Oil Proves Economically and Ecologically Advantageous for Venezuela

Stack.jpgWith oil prices surging 4% Friday to get back near $60 a barrel, Venezuelan oil earns ten times more on the international market than it does domestically. Such lopsided price ratios have inspired PDVSA, Venezuela’s state oil company, to boost fuel exports by 100,000 barrels per month. PVSA aims to do this not by increasing their overall production levels, but rather through renewable energy projects within Venezuela, whereby the nation’s lowered oil consumption will allow for a higher volume of exports.
This is an interesting case, as it involves the insatiable appetite of the global market for oil creating an economic climate within Venezuela in which it is advantageous to become less petrol dependant. In becoming less petroleum dependant, Venezuela has a greater amount of oil remaining to export, as well as cleaner air inside its borders. At present, Venezuela is the fourth leading exporter of crude oil worldwide.

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