PDVSA pushes back spending again

Hey remember how in April 2012 I wrote how PDVSA would miss its 2012 investment goal but was still planning to increase investments? And how in 2011 I wrote how PDVSA was pushing back its projected increase in oil output? Well it’s that time of year again. The 2012 report actually came out a month ago but I’ve been busy, and blogs are dead and, well, here’s your annual dose of utterly predictable bad news.

 

Here is the new investment plan. You are free to compare it on your own time with prior years, pasted below.

Screen Shot 2013-06-01 at 6.53.15 PM

 

Looks like someone hit them with a realism stick. Speaking of which, the report overall is very good. Nice design, and a lot of metrics I wish more oil companies would imitate. I’ll have more on it in another post. But for now, this one.

 

 

Also, I take this opportunity toot my own horn. Here’s what I said a year ago:

The report came out the most promptly I’ve ever seen. I am betting that they were able to get this work done because Pres. Hugo Chávez has been busy dealing with cancer and hasn’t been calling up all the top executives to spend endless hours in meetings every few days, sending every accountant and lawyer to endless hours of rallies and hauling oil engineers off to pursue pet projects. Heck I think it’s been a good six months since PDVSA got a new mandate.

This may bode well for Venezuela’s fortunes. Maybe the state oil company is for once in a decade trying to produce oil in a safe manner rather than running around like a $100 billion a year presidential concierge.

I think that prediction panned out very well. The company got totally screwed up again by having two elections in a row, but now seems unusually down-to-business. We’ll see how long that lasts, but for now it’s a good thing if you care about the Venezuelan people (and/or want more global warming).

Advertisements

3 thoughts on “PDVSA pushes back spending again

  1. Carol Watkins

    Setty is working late on a Sat night. No big dates? I’m off to make din-din right now. Hugs

  2. Gustavo coronel

    Investments for $24.5 billion, of which some $4 billion are for non-oil related iactivities, are not nearly enough to stop the steep decline in production and in most other aspects of the company. As the lion’s share of these investment is in the production side, this is a classic example of a company being liquidated. We should add that the investments in the Faja (empresas mixtas) are not being made by the company itself but by the partners. The total company investment, therefore, appears inflated.
    It’s quite a mess.
    Just to compare, Shell, Petrobras, BP or Exxon invest about $40 billion per year

Comments are closed.