Venezuela Maintains Oil Output Despite Chevron Exit with Diluent Stockpiles

Venezuela's oil output has maintained an average of 1.1 million barrels per day since Chevron's exit, thanks to a pre-US deadline stockpile of diluent imports. The country imported 97,000 barrels of diluent per day in May, the highest in over four years, but with sanctions now in place, PDVSA may have to resort to less-than-ideal alternatives, adding risk to production. Venezuela received its first naphtha cargo since May on Saturday.

Venezuela's oil output has shown remarkable resilience following Chevron's exit, maintaining an average of 1.1 million barrels per day since the company's departure. This stability can be attributed to a pre-US deadline stockpile of diluent imports, which has helped prop up production in the face of the US sanctions [1].

In May, Venezuela imported 97,000 barrels of diluent per day, the highest level in over four years. This significant increase in imports was a strategic move to ensure a steady supply of diluent, a key component needed to facilitate the flow of heavy crude oil from the Orinoco fields through pipelines. The diluent stockpiles have thus far enabled PDVSA to sustain its output despite Chevron's withdrawal [2].

However, the outlook for diluent supply is now uncertain. With the sanctions in place, PDVSA may need to resort to less-than-ideal alternatives, such as naphtha from Iran and heavy naphtha from Russia. These sources are also subject to sanctions, adding an additional layer of risk to Venezuela's oil production. The country received its first naphtha cargo since May on Saturday, indicating efforts to diversify its diluent supply [2].

The future of Venezuela's oil sector remains uncertain, with political tensions and economic sanctions posing significant challenges. The country is actively seeking foreign investment to stabilize its energy sector and overcome the production shortfalls left by Chevron's exit. The Venezuelan opposition has proposed energy reforms to attract private investment and restructure the sector, aiming to increase production beyond three million barrels per day [1].

In conclusion, while Venezuela's oil output has shown resilience in the short term, the long-term sustainability of this production depends on the government's ability to secure a stable regulatory framework and diversify its diluent supply. Market players must navigate an environment marked by political tensions and persistent financial constraints.

References:
[1] https://energynews.pro/en/venezuela-maduro-opens-the-oil-sector-to-foreign-capital-after-chevrons-withdrawal/
[2] https://www.bloomberg.com/news/articles/2025-07-22/venezuela-oil-output-survives-chevron-cvx-exit-with-diluent-spree