Despite Huge Reserves, Venezuela a Minor Player in Global Oil Supply: Narendra Taneja

Although Venezuela possess the global Magnus Reservoirs oil reserves, they still contribute very little in oil supply in the global oil chain. According to Narendra Taneja, an expert in energy policy, at present it appears that there are no major influences of Venezuela's developments in the global oil price changes. Speaking to news agency ANI, Narendra Taneja explained that while Venezuela has vast oil reserves, it is a very small supplier in the global market.

He said that Venezuela produces only about 900,000 barrels of oil daily, most of which is exported to China. Furthermore, Venezuela's oil is extremely heavy crude, which most refineries in the world cannot easily process. Taneja also stated that Venezuela's production could increase rapidly following US intervention. He stated that Venezuela's oil production could reach 3 million barrels per day in the next year, adding additional oil to the global supply system. This situation could not be negative for the market, but could bring stability.

He also described this as a major opportunity for Indian oil companies. According to Taneja, if sanctions on Venezuela are lifted, Indian companies could resume oil imports and investments there. India has long worked with Venezuela in the energy sector, and Indian refineries have experience processing oil from there.