Venezuela's Oil Refineries on Life Support as Capacity Plummets

Venezuela's oil refining sector is struggling to operate at full capacity due to decades of underinvestment, equipment failures, and shortages.

The Paraguana complex in western Venezuela, which has a capacity of 955,000 barrels per day, is operating at only a fraction of its capacity.

Reuters reporters toured the area around the Amuay and Cardon refineries and spoke to 44 workers, contractors, residents, and experts. One worker described everything as 'ugly and rusty.'

Open dumps are overflowing, and remnants of oil and other substances leak through pipelines and valve equipment.

Venezuelan energy analyst Osvaldo Felicola estimated that a full restoration of refining capacity would require at least $20 billion and could be delayed until 2027 or beyond due to the government's focus on increasing oil production.