Venezuela Earthquake Recovery Strains Oil Sector Amid Rising Costs

Venezuela is facing a difficult recovery from twin earthquakes that struck on June 24. The death toll has risen to approximately 6,300, while independent registries suggest the number of missing people may be higher than official figures indicate.

The World Bank estimated that the earthquakes caused around $19.6 billion in direct physical damage, with residential property making up the largest share. Reconstruction costs are expected to be substantially higher as Venezuela replaces destroyed buildings and repairs damaged infrastructure.

Meanwhile, the country's oil sector has continued to expand, with crude exports averaging approximately 1.16 million barrels per day (bpd) in July. Shipments to US refiners reached their highest level since early 2019, while exports to India and Europe declined.

The shift towards the US refining system has tied Venezuela's recovery to American oil producers. The US Department of Energy Under Secretary Kyle Haustveit stated that over 500,000 bpd of Venezuelan crude was reaching American refineries, while more than 100,000 bpd of US-produced naphtha was flowing into Venezuela.