Venezuela's oil GDP in 2011 same as in 2002

State-run oil company Petróleos de Venezuela (Pdvsa), which has become the financial and social support of the government could not manage to increase the value of oil production in 2011, despite the fact that it was another oil boom year.

Venezuela's oil gross domestic product (GDP) ended 2011 with a 0.6% growth compared with 2010, according to data released by the Central Bank of Venezuela (BCV).

Drilling and production of crude oil and byproducts amounted to USD 1.53 billion in 2011. Although the oil GDP was higher than the numbers reported in 2009 and 2010, it is similar to oil GDP in 2002, which also stoke USD 1.53 billion.

Revenues and debt

Last year, the average price of a barrel of the Venezuelan basket of crude oil and byproducts amounted to USD 101.06, the highest ever recorded, which is 40% higher than average oil price in 2010 (USD 71.97).

Thanks to the oil boom, Pdvsa's revenues climbed by 35% in 2011, up to USD 127.88 billion, which shows a strong correlation between the hike of oil prices and the state run oil company's revenues.

It implies that Pdvsa's revenues have remain somewhat even thanks to windfall oil profits, because Venezuela's oil production remains stagnant.

While the oil output was brought to a standstill, Pdvsa has borrowed up to USD 34.8 billion. Debt of the state-run oil holding surged by 40% in 2011.

According to Minister of Petroleum and Mining and Pdvsa's President Rafael Ramírez, the state-run oil company has undertaken an ambitious project to expand oil production which will be financed by debt.

"We have launched a USD 236 billion investment plan between 2013 and 2018," he said.

Pdvsa has also made financial commitments to fund most of Venezuela's state social programs (missions), including the Great Mission Housing Venezuela, the Great Mission AgroVenezuela, and loans to Venezuela's basic industries.

Translated by Gerardo Cárdenas