Source: Fortune.com
Summary
Venezuela’s oil production is increasing, but it won’t solve the global energy crisis caused by the closure of the Strait of Hormuz. The country’s oil output is expected to grow from 1 million barrels a day to 1.2 million by the end of 2026, but this is insignificant compared to the 20 million barrels a day that pass through the Strait of Hormuz. The White House is trying to build a coalition to control the strait, and the International Energy Agency is releasing 400 million barrels of oil from strategic reserves. However, these efforts are not enough to solve the crisis.
Our Reading
The numbers tell one story.
Venezuela’s oil production is a drop in the bucket compared to the massive losses from the Persian Gulf. The country’s oil output is expected to grow, but it’s a gradual process that won’t solve the global energy crisis. The White House’s efforts to build a coalition and release oil from strategic reserves are not enough to solve the crisis. The closure of the Strait of Hormuz is a math problem that can’t be solved by Venezuela’s oil production.
It’s a matter of scale, not potential.
Author: Evan Null
