...Venezuela’s heavier oil fetches about $23 a barrel...
...its break-even production point of about $17 to $18 a barrel...
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There was a time when 5 bucks a barrel was a decent profit,
but I guess not anymore; especially if you had your eggs
in one basket and become dependent on the higher profit.
What will they do?
Increase production = flood the market = drive prices down further...
Bad situation they have gotten themselves into.
Venezuela’s has multiple problems. They are pumping all they can and have no money to invest to increase production.
the state is more than $50 billion in arrears to private companies...
Oil accounts for over 95 percent of the country’s export earnings....
Venezuela’s inflation rate will top 720 percent this year, up from 275 percent in 2015...
The official exchange rate still stands at 6.29 bolivars to the dollar, but on the black market, one dollar costs upwards of 800 bolivars, a rate four times higher than a year ago....
But a debt default may not be imminent. Barclays believes that Venezuela will meet the more than $2 billion due in February. The trouble could, however, come later this year. PDVSA has bonds maturing in October, which are currently selling at 57 cents on the dollar, a strong indication that investors think the company will fail to meet its obligation....
http://www.energyfuse.org/venezuela-has-survived-oil-price-downturn-for-now/
Venezuela needs oil at $125 a barrel to match their spending.