venezuela is the country that is second to opec in terms of oil production.
venezuela is the country that is second to opec in terms of oil production.
which country is second to opec in terms of oil production?
venezuela
with of proven oil reserves in 2004, venezuela has the largest proven oil reserves in south america and the sixth largest in the world—more than canada, mexico, and the united states combined. venezuela’s 2002 production of (bbl/d) of crude was a drop of 8.3 percent over 2001 and the country’s lowest production figure since 1994. in 2003, a year in which production was halted for a couple of months by a general strike and further disrupted by the firing of nearly half of the state oil company’s work force, venezuela's total oil production was an estimated . in 2004 oil production totaled about , according to the government’s estimate. prior to president chávez's december 1998 election, venezuela regularly exceeded its organization of the petroleum exporting countries (opec)-agreed oil production targets. hugo chávez maintained a policy of strict adherence to opec quotas and played a leading role in shifting opec from a volume-oriented strategy to one of controlling prices. with planned investments of us$26 billion in oil and natural gas exploration and production between 2004 and 2009, venezuelan petroleum expects oil production to reach by 2009.
mining in venezuela
in 1988 iraq's oil minister, issam al-chalabi, stressed a further reduction in the crude oil production quota of organization of the petroleum exporting countries (opec) members so as to end the 1980s oil glut. chalabi argued that higher oil prices would help iraq increase its revenues and pay back its us$60 billion debt. however, given its large downstream petroleum industry, kuwait was less concerned about the prices of crude oil and in 1989, kuwait requested opec to increase the country's total oil production ceiling by 50% to 1.35 million bpd. throughout much of the 1980s, kuwait's oil production was considerably above its mandatory opec quota and this had prevented a further increase in crude oil prices. a lack of consensus among opec members undermined iraq's efforts to end the oil glut and consequently prevented the recovery of its war-crippled economy. according to former iraqi foreign minister tariq aziz, "every us$1 drop in the price of a barrel of oil caused a us$1 billion drop in iraq's annual revenues triggering an acute financial crisis in baghdad". it was estimated that between 1985 and 1989, iraq lost us$14 billion a year due to kuwait's oil price strategy. kuwait's refusal to decrease its oil production was viewed by iraq as an act of aggression against it.
invasion of kuwait