Blackouts can lead to a drop in oil production, the authorities are encouraged to expect God’s help
Michael Overcenotical drought and shallowing of the reservoir threaten the stop of the giant El Guri hydroelectric
Carlos Garcia Rawlins / Reuters
The Venezuelan government announced Thursday that there will be over 40 days for four hours a day turn off the electricity in large parts of the territory. Although the country is experiencing a severe economic crisis, and so suffers from constant power outages, has now developed a particularly difficult situation. Due to the drought, the water level in the reservoir at the power station Guri El (provides about 65% of electricity in the country) has dropped to critically low levels. Therefore, in order to save electricity, you must disable it in the homes, said the Minister of electric power industry, Luis Motta domínguez.
The outage will start on Monday in 10 of 23 States and will affect many major cities, including the capital Caracas. The water level at the power station, according to the Minister, fell to to 242.7 m above sea level; the minimum required level to drive the turbines – 240 m. “With God’s help will come the rains,” said Motta domínguez. He called the sacrifices that will have to go Patriotic and urged Venezuelans to show solidarity, according to The Wall Street Journal.
This is not the first measure that the government is aiming to save energy. President Nicolas Maduro has already announced three additional days off at Easter, and in early April did Friday until the end of the month in may and a day off. He also asked the Venezuelans to save electricity in the home.
Nicolas Maduropeptin Venezuela
Women should not use hair dryer for drying hair. In any case they look prettier when their hair dried in a natural way.
In addition, the shopping malls close earlier now and in the coming days, the authorities intend to put the clock half an hour forward to daylight more overlap with workers. Watch moved on half an hour ago Hugo Chavez, Maduro’s predecessor.
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“Who will I replace food that spoiled after turning off the electricity? – WSJ quoted the 39-year-old accountant Anna Gomez. – And who guarantees that it will be exactly four hours, as the government says?” The government explains the problems with electricity for a long period of drought and the machinations of political opponents.
Lack of electricity is another evidence of the total deficit in the country, with an economy based on petrodollars. Residents have second year standing in hours-long queues to purchase consumer goods in the country increased dramatically the level of crime and smuggling. In many ATM cash withdrawals are limited to 6000 bolivars per day (less than $6 on the black market). According to the IMF forecast, GDP decline this year will be 8%, what will be the deepest recession since 1810, when the country gained independence. However, this is a rough estimate, because the authorities already publish economic statistics. The IMF also expects inflation at the level of 720% this year – the highest in the world.
Marco Bello / Reuters
Gasoline in Venezuela has been and remains the cheapest in the world, despite the rise in the price of a liter of 95-more than 6000%. Filling station workers sometimes receive from drivers more tips for helping at the gas station than the cashier for filling the tank. Photo: tanker counts money at the gas station of the state company PdVSA
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Venezuela imports of a banknote aircraft
Because hyperinflation is not enough money, like other things; Caracas ordered another 10 billion banknotes – more than the fed prints for the year
The government spends a lot of money to print banknotes abroad – it doesn’t want to pass on banknotes of a higher denomination, so as not to acknowledge the fact of hyperinflation. And on Thursday the company Empresas Polar, the largest private food producer in the country, said that by the end of April she will have to stop beer production because of the shortage of dollars, which she may not import malt. Last week, oilfield services company Schlumberger said that partly reduce work in Venezuela because of lack of payments “in recent quarters and the lack of progress in the development of new mechanisms that would help solve past and future problems with receivables”.
Assessment of the energy consulting firm FGE, in the case of withdrawal from Schlumberger Venezuela “at least a fifth of the oil production would be at risk of a significant reduction this year, which by December it could fall to 150,000 barrels per day.”
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It is unlikely to help the economy, experts say
Oil production may suffer because of constant power outages, writes the Financial Times. “It is worth considering that in Venezuela less than 20 days could be a major failure in the production of electricity, wrote in a recent report, Olivier Jacob of Petromatrix consulting company. It could have a negative impact on the production of oil and oil products, and the country may be forced to increase imports of the latter for use in the generators”. Oil exports from Venezuela could also be reduced, analysts say, because the country will have partly to redirect it to the domestic market.
Electricity rationing may hit oil production, says Francesco Monaldi, an expert on Venezuelan energy sector in Houston, Baker Institute for Public Policy. Due to lack of investment, outdated infrastructure and lack of money in oil production for the year may fall by 100 000-200 000 barrels per day, he said FT.
She is slowly declining, according to OPEC data. According to the March report by the organization, in February it was 2.52 million barrels per day compared to 2.59 million in December 2015 the Average production in Venezuela having the largest oil reserves in the world amounted in 2015, 2.65 million barrels against of 2.68 million barrels a day in 2014
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