World

 

Brazil

Mexico

Bolivia

Peru

Trinidad &
Tobago

Venezuela








Very usefull links



Petroleumworld
Bookstore



Institutional
links


OPEC



 


Petroleumworld
Business Partners

 


IRAQ OIL THE FORUM


Blogspots
recomended

caracas chronicles

Gustavo Coronel

Iran Watch.org

Venezuela Today

Le Blog des
Energies Nouvelles

 

 

Lagniappe


 

VenEconomy : On the brink of an abyss

 

 

 

The wrongheaded country project that the government has been developing over the past 12 years is imploding in practically all areas that are vital to the country.

The implosion of one such area that is having a tremendous impact on the population is the systemic crisis affecting the domestic electricity sector, which is being destroyed by lack of investment and maintenance, incompetence, neglect, and corruption.

The country does not have enough hydroelectric or thermoelectric generation capacity; the transmission grid is insufficient to meet demand and is suffering from structural problems; and distribution system is severely dilapidated. In 2010, a plan was announced for investing US$5 billion to incorporate 5,000 MW of new generation before 2011, but they only managed to bring on line 1,200 MW (only 24% of the goal), according to statements by Energy Minister Alí Rodríguez Araque himself.

At the end of March 2011, around 30% of Guri Reservoir's generation capacity was out of service and today the high voltage transmission line is dangerously overloaded. Approximately 60% of the thermoelectric facilities are also out of service. Venezuela has no reserve electricity generation capacity that it can use if there is an accident anywhere in the electricity grid.

Since 2010, when the long-announced energy crisis finally erupted, there has been no let-up in the “scheduled” power cuts, rationing, or blackouts. The national electricity crisis continues unabated and is getting worse.

In the first 70 days of 2011 alone, Caracas experienced 30 “electricity deficiencies” – government-speak for “big blackouts” – compared to eight in all of 2010. This week, the Executive announced scheduled electricity “rationing” throughout the country, with no mention of dates or times, which leads one to suspect that this is merely another trick aimed at covering up the system's dilapidation and deficiencies.

The electricity crisis is so profound that it is now even undermining Venezuela's already deteriorated oil industry. In its Report and Accounts for 2010, PDVSA admits that refining was affected by failures in the electricity supply, “whose impact generated material and economic losses.”

In the last few weeks alone, an interruption in the electricity service severely compromised the functioning of Paraguaná Refining Complex in Falcón, Venezuela's biggest refining facility and one of the biggest in the world.

In other words, the main source of revenues for solving the electricity crisis and other serious problems beleaguering Venezuelans is severely threatened. What is worse, this situation is pushing Venezuela towards an abyss.

 

Follow us and post your comments: in Twitter Facebook

 

 

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 May 13, 2011. Petroleumworld reprint this article in the interest of our readers.

All comments posted and published on Petroleumworld, do not reflect either for or against the opinion expressed in the comment as an endorsement of Petroleumworld. All comments expressed are private comments and do not necessary reflect the view of this website. All comments are posted and published without liability to Petroleumworld,

Use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of environmental and humanitarian significance. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml.

All works published by Petroleumworld are in accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.Petroleumworld has no affiliation whatsoever with the originator of this article nor is Petroleumworld endorsed or sponsored by the originator.

Petroleumworld encourages persons to reproduce, reprint, or broadcast Petroleumworld articles provided that any such reproduction identify the original source, http://www.petroleumworld.com or else and it is done within the fair use as provided for in section 107 of the US Copyright Law.

If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
Internet web links to http://www.petroleumworld.com are appreciated
.

Petroleumworld News 05/16/2011

Follow us in Twitter

And post your comments in our Facebook site


Petroleumworld welcomes your feedback
and comments, share your thoughts on this article,
your feedback is important to us!


We invite all our readers to share with us their views and
comments about this article, write to editor@petroleumworld.com

Copyright© 1999-2010 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ stories by anyone provided it mentions Petroleumworld.com as the source.Other stories you have to get authorization by its authors

Send this story to a friend Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+Windows NT 4.0, '95, '98, ME,
XP, Vista, W7 +/ 800x
600 pixels

.


TOP


Editor:Elio Ohep /
Contact Email: editor@petroleumworld.com

Contact:
editor@petroleumworld.com/ phone: Office (58 212) 635 7252,
or Cel (58 412) 996 3730 or
(58  412) 952 5301


CopyRight © 1999-2010, Elio Ohep - All Rights Reserved. Legal Information

- CCS Office Tele
phone/Teléfonos Oficina: (58 212) 635 7252

PW in Top 100 Energy Sites


Technorati Profile

Fair use notice of copyrighted material:

Legal Information

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.