Senator Dick Lugar - Driving the Future of Energy Security

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Lugar Energy Initiative > Links > The Venezuela Report

The Venezuela Report

Venezuela is the world's eighth largest oil exporter and among the top 10 countries in total proven oil reserves. Venezuela also supplies about 11 percent of current U.S. imports of crude oil and petroleum products and wholly owns five refineries in the U.S. Consequently, Venezuela is a key player in the future energy security of the United States and the world.

Recent events have called into question Venezuela’s reliability as an oil supplier to the United States. From December 2, 2002 to February 2, 2003, the Petroleos de Venezuela, S.A., Venezuela’s national oil company, went on strike to protest the policies of President Hugo Chavez. As a result of the strike, production fell from 2.9 million barrels a day (mbd) to 1.5 mbd and all exports stopped. In response, President Chavez fired up to 40 percent of the striking workers and resumed production. Nevertheless, Venezuelan exports of oil to the United States fell by 1.2 mbd in the winter of 2002-2003. More recently, President Chavez threatened to stop exporting Venezuelan oil and refined petroleum products to the United States. He also has made statements regarding the possible sale or closure of Venezuela’s refinery interests in the United States. Furthermore, Venezuelan officials have repeatedly stated that they are trying to develop new markets for their crude oil, namely in China.

Senator Lugar is deeply concerned about both the geopolitical context in which oil transactions take place and the energy security of the United States. Thus, as Chairman of the Senate Foreign Relations Committee in the 109th Congress, he requested that the General Accounting Office investigate the potential consequences of a disruption of Venezuelan oil sales to the United States.

Please contact the Lugar Energy Initiative at: energy@lugar.senate.gov

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