Venezuela Begins Shutting Oil Wells Amid US Naval Blockade and Storage Crisis
According to the Economic Desk of Webangah News Agency, Venezuela’s state-owned PDVSA oil company has initiated the shutdown of wells in the Orinoco Belt region since December 28 due to exhausted storage capacity and rising crude inventories. Informed sources indicate PDVSA plans to reduce Orinoco Belt output by at least 25% to 500,000 barrels per day, representing a 15% cut from Venezuela’s total production of 1.1 million bpd.
The decision comes as President Nicolás Maduro’s government struggles to maintain oil exports – the backbone of Venezuela’s economy – during an ongoing US naval blockade. Sources reveal well shutdowns are considered a last resort due to high restart costs and operational challenges.
PDVSA approved the production reduction plan on December 23, beginning with closures in the Junín area containing the Orinoco Belt’s heaviest crude, followed by wells in Ayacucho and Carabobo with lighter grades. China remains Venezuela’s primary oil buyer.
The US imposed sanctions on Venezuela in 2019, with President Donald Trump ordering December’s military blockade citing the need to combat drug cartels.
