Venezuela oil production reaches 3 million barrels a day, company president says

by The Associated Press

Venezuela's crude oil production has surpassed 3 million barrels a day — approaching levels that made it the world's fifth-largest exporter before a crippling national strike, the state oil monopoly's president said March 15.

But government officials say work still needs to be done before the industry fully recovers from the failed two-month walkout aimed at forcing President Hugo Chavez to resign or call early elections.

The strike, which ended in February, was strongest in the oil industry, the source of half of government revenues and 80 percent of export earnings.

“The task now that we have reached that level is to maintain and stabilize production,” said Ali Rodriguez, president of Petroleos de Venezuela S.A.

Oil executives fired for participating in the strike dispute the government figures, saying daily production is at 2.1 million barrels.

Before the strike, the South American country was a main exporter to the United States, producing 3.2 million barrels a day. Oil production dropped to 200,000 barrels a day at the height of the walkout, costing the country $6 billion. Several refineries also were damaged by being shut down for so long.

Energy and Mines Minister Rafael Ramirez said Friday that Venezuela reached an agreement with the Organization of Petroleum Exporting Countries allowing it to produce above its crude oil output quota of 2.8 million barrels a day to make up for the lost revenue. Venezuela is an OPEC member.