Venezuela Earthquakes Spare Oil Output, But Power Grid Damage Hinders Refineries

Recent earthquakes in Venezuela have spared the nation's critical oil infrastructure, preventing significant disruptions to global oil markets or domestic production. The tremors, among the most severe in the country's history, have not affected the ongoing extraction of approximately 1.2 million barrels of oil per day, with all wells reportedly functioning as normal.

Key oil fields and export terminals were undamaged by the seismic activity. However, the earthquake's impact on the electrical infrastructure has created significant challenges. This damage is impeding the restart of refineries and petrochemical facilities, including the El Palito refinery, which has a capacity of 146,000 barrels per day and is currently almost entirely offline. The Morón petrochemical complex is also undergoing a slow restart.

Logistical hurdles and power supply issues remain the primary concerns, rather than direct damage to oil extraction or export capabilities. The Puerto Cabello, Venezuela's largest cargo port, is partially operational, while the La Guaira port remains closed. Despite these issues, the global oil supply has not yet been affected, and oil prices have not seen a corresponding reaction, as the market assesses that essential energy infrastructure has largely been protected.

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Posledice naravne katastrofe so bile najbolj občutne na električni infrastrukturi, kar otežuje ponoven zagon rafinerij, petrokemične industrije in pristanišč.