In a rapidly unfolding situation in South America, two sources familiar with the internal operations of Venezuela’s state-owned oil company (PDVSA) revealed today that oil production and refining operations are proceeding at normal rates, confirming that vital energy infrastructure has not been affected by recent military operations.
Field damage assessment
Initial reports indicated that the country's main oil facilities were undamaged by the US attacks aimed at capturing President Nicolás Maduro and removing him from the country. However, a source clarified that the port of La Guaira, one of the largest commercial ports located near the capital, Caracas, sustained significant damage. The source noted that this port is not used for oil exports, thus mitigating the direct impact of the strike on the energy sector.
Background of the conflict and the indictment
Maduro's arrest comes as the culmination of a long-standing US pressure campaign that included offering substantial financial rewards, reaching up to $50 million, for information leading to the capture of regime leaders. These actions are based on an indictment issued by a US court in March 2020, related to charges of "narco-terrorism," strategic collaboration with the Colombian FARC guerrilla group in drug and arms trafficking, and leadership of the so-called "Cartel de los Soles," designated as a foreign terrorist organization.
The strategic importance of Venezuelan oil
To understand the importance of protecting oil facilities, one must consider the global economic context. Venezuela possesses the world's largest proven oil reserves, exceeding 300 billion barrels. PDVSA is the backbone of the Venezuelan economy, with oil revenues representing the country's primary source of hard currency. Any direct attack on these facilities would have caused a severe shock to global energy markets and led to unpredictable spikes in crude oil prices, especially given the current geopolitical tensions.
Expected economic and political repercussions
Economic and energy experts believe that keeping oil facilities out of the conflict reflects a US desire to avoid a complete collapse of the energy market, while focusing on political and security objectives such as law enforcement and combating what Washington calls "international terrorism." While some analysts have questioned the organizational structure of the "Cartel de los Soles," the military operation demonstrated an unprecedented US determination to change the political landscape in Caracas without destroying the economic infrastructure that might be essential for any future transition.
