Even though the message of the title inclines the phrase towards the pernicious history of tying the low upward rhythms of consumer prices, to the abundant imports of goods and services stimulated by the abundant and cheap dollars of the oil rent, its intention, that of the title It is noteworthy that, in the midst of the criminal blockade imposed by the US government, Venezuela is managing to raise oil production and reduce the thrust of inflation.
The latest PDVSA report, dated November 7, 2021, records that oil production stood at 881,1 thousand barrels per day, MBD, a figure that, without including the 50 MBD of Natural Gas Liquid, more than doubles the pit of 356 MBD in which the industry had fallen in June 2020, due to a blockage easily applicable to an industry monolithically tied to technological, IT, managerial and even corporate culture dependence on US oil company models. I had all the eggs placed in the same basket.
The sustained advance of oil production stands at an average of 857 MBD in October, and the effort and perseverance of PDVSA workers promises, if there are not the always probable obstacles to the blockade, to close 2021 above one million barrels per day.
This rebound is due to the fact that workers in the oil industry have been applying and showing intelligence in the difficult task of circumventing, dodging, and evading the illegal, disgraceful and systematic sanctions imposed by the obsessive behaviors of the US government, whose Extraterritorial application and violation of international trade laws oblige the sanctioned countries to negotiate with buccaneers, pirates, corsairs, vermin of all kinds, in order to export their crude oil and bring foreign currency to their nations.
In the core oil chain, which goes from upstream: exploring and producing; to downstream: refine and sell; Everything is integrated, in such a way that if tankers are prohibited from loading crude oil to be transferred and sold abroad, production must be reduced, and storage tanks must be filled to the top, with the aggravation that the strangulation forces the sale of the oil even at prices below the market, to prevent the industry from being poisoned by its own oil.
Add that the emblem oil of the Venezuelan industry is Merey 16, heavy, which means that it has a high sulfur content, it is more difficult to transport through pipes and more expensive to refine to obtain the most desired energy product on the planet: the gas.
Before, without blockade, the Merey 16 was exported to Citgo refineries located on the US coast that overlooks the Gulf of Mexico; Now, with blockade, in their failed effort to overthrow the legitimate government of Venezuela, Trump and Guaido seized the PDVSA subsidiary from Venezuela and, together with Biden, refuse to accept Venezuelan oil
For this reason, in addition to learning to negotiate and defend themselves against high seas pirates of all stripes, PDVSA workers have managed to conclude an agreement with the Republic of Iran, which consists of exchanging heavy oil for condensates, the name of a type of oil. Very light crude that can be mixed with heavy crude to give it greater fluidity that facilitates its transfer through pipelines, with the addition of being able to use it in refineries to produce gasoline. So much so, that the oil production of the Belt is located at 522 MBD.
Now, the other macroeconomic variable, with a very high impact on the economy and impact on the pockets, inflation, after having risen to the scandalous figure of 130.000 percent in 2018, with vulgar digits that exceeded 120 percent per month; It fell to 6,8 percent last October, the lowest since April 2015, and eager to get below 1.000 percent in all of 2021.
Confidence captivated by the peace that reigns in the country, less insecurity in the streets, market spaces abandoned by large companies whose bourgeois, believers or betting the hecatomb, left the country, freeing up countless production initiatives and businesses to produce and market everything from detergents, coffee, corn flour, medicines, white lines, to household appliances; many assembled with their own effort in bolivars, others with remittances from nationals abroad who today look at Venezuela with different eyes. And behind all, the economic policies of exchange liberalization, reorientation of the public budget, lower price controls.
“It is likely that in early 2022 Venezuela will abandon hyperinflation. Good news, no doubt. A key factor in this process is dollarization, which has had a lot of chaos, but which has given new dynamism to the Venezuelan economy ”, exclaims and explains the economist Asdrúbal Oliveros, director of the economic analysis company Ecoanalítica.
Raising oil production, reducing inflation, making the economy grow in the midst of its own chaos and caused by the systematic policy of disorder unleashed by the United States, demonstrates the great skill and intelligence of Venezuelans.