Chaos in Venezuela: Economic collapse in the country and fuel shortages make Venezuelans steal oil to produce their own gasoline

Venezuela faces economic chaos and the shortage of gasoline in the largest oil reserve in the world, generating despair in the population that steals oil from hibernated fields that belong to the state-owned PDVSA to manufacture its own gasoline. Iranian oil tanker loaded with gasoline, bound for Venezuela, “breaks” American barrier in the Caribbean Sea

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The shortage in the world's largest oil reserve, which hit the mark of 1,2 million bpd before the pressure of sanctions imposed by the United States (applied in January 2019 to force President Nicolás out of office), produced just 397 bpd in September, the lowest level since the 1930s, forcing the population to wait in kilometric queues at gas stations.

Faced with the shortage of gasoline in Venezuela, the supply chain of so-called “artisanal gasoline” in oil fields such as La Concepción, in the State of Zulia, which has been producing more than 12 bpd of high-quality “light” oil for 15 years gained strength in the country.

Despite the stolen oil not being too significant, the action portrays the economic chaos that the country is facing, where PDVSA is unable to supply the local population with gasoline.

Now, small tubes protrude from holes made in pipelines built to transport oil from La Concepción to tanks and export facilities. The tubes carry oil to primitive refineries in the backyards of a neighboring town.

Employees of the Venezuelan oil company, who earn just a few dollars a month, accept small bribes to turn a blind eye to thefts, a PDVSA worker said.

PDVSA's security forces barely bother to protect dormant facilities, a pattern replicated across Venezuela, where theft of oilfield equipment became commonplace during the country's economic meltdown.

“It is obvious that people are stealing oil, which is the only source of wealth we have,” said the worker.

PDVSA did not comment. A former company executive estimated that less than 1.000 bpd are stolen, or less than 1% of total production.