Venezuela oil revival spurs U.S. equipment rush tied to $100 billion reconstruction plan

  • U.S. businesses are shipping used oilfield equipment to support Venezuela’s anticipated production recovery.
  • Venezuela’s output fell from above 3 million bpd in the late 1990s to about 1.25 million bpd.
  • Guanta Express expects full capacity through year-end and has orders for its next two vessels.

U.S. companies are buying and shipping used oilfield equipment to Venezuela as Washington shifts from seven years of sanctions toward promoting a $100 billion reconstruction plan. Guanta Express expects to operate at full capacity through year-end, while the country’s oil operators seek rigs, pumps and other equipment to expand output in Lake Maracaibo and the Orinoco Belt. Venezuela produced more than 3 million barrels per day in the late 1990s but now produces about 1.25 million bpd. The rush is complicated by concerns over the reliability, maintenance records and insurance coverage of auctioned equipment.

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