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Half of Venezuela's Oil Rigs May Disappear If U.S. Waivers Lapse

  • Oil output near lowest since the 1940s and set to fall more
  • Maduro’s regime may need to lean on Russian, Chinese drillers
Oil Spills At Venezuelan's PDVSA Facilities

Photographer: Bloomberg

Updated on

A looming U.S. sanctions deadline is threatening to clobber Venezuela’s dwindling oil-rig fleet and hamper energy production in the nation with the world’s largest crude reserves.

Almost half the rigs operating in Venezuela will shut down by Oct. 25 if the Trump administration doesn’t extend a 90-day waiver from its sanctions, according to data compiled from consultancy Caracas Capital Markets. That could further cripple the OPEC member’s production because the structures are needed to drill new wells crucial for even maintaining output, which is already near the lowest level since the 1940s.