VenEconomy : Crude gaps
Last week, Petróleos de Venezuela (PDVSA) presented its Report and Accounts for the year 2011, which came to some 623 pages, including its financial statements audited by KPMG.
Unfortunately, this lengthy report not only has a large number of big gaps, as is Chavismo’s custom when “rendering accounts,” but seeks to hide the oil company’s true situation behind excessive verbiage.
One of the big gaps that appears to have been overlooked by the external auditors is the huge discrepancy between the 2.99 million barrels a day of crude that the company claims it produced in 2011 and reports by independent analysts of international renown, such as the International Energy Agency and the OPEC, who state that PDVSA’s production in 2011 was in the order of 2.4 million barrels a day; in other words a “minor” discrepancy of 500,000 barrels a day that, at an average price of $100 per barrel, represents $50 million a day or $3.25 billion for the entire year.
Another gap the auditors failed to question has to do with Venezuela’s claim that it has the “biggest crude reserves in the world,” while the investments required for taking advantage of those reserves have not been made and, therefore, they are reserves that run the risk of remaining in the ground forever; a risk that is becoming increasingly likely, if account is taken of the warning by experts that the region’s large shale oil reserves are threatening to flood the international oil market in the next few years.
These are just two of the hundreds of gaps in the facts and figures reported by PDVSA for 2011 and that point to the severe state of decline of Venezuela’s oil company.
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VenEconomy has been a Venezuela's leading specialized publisher on financial, political and economic data since 1982. VenEconomy's Points of View on the issues of the day, as seen by VenEconomy during the last week. Petroleumworld does not necessarily share these views.
Editor's Note: This commentary was originally published by Veneconomy , on April. 24, 2012. Petroleumworld reprint this article in the interest of our readers.
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Petroleumworld News 04/17/2011
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