SUDDEN DROP IN VENEZUELAN EXPORTS

C O N F I D E N T I A L CARACAS 001400 SIPDIS SIPDIS ENERGY FOR CDAY, DPUMPHREY, AND ALOCKWOOD NSC FOR DTOMLINSON E.O. 12958: DECL: 11/25/2015 TAGS: EPET ENRG EINV VE SUBJECT: SUDDEN DROP IN VENEZUELAN EXPORTS REF: A. CARACAS 01238 ¶B. CARACAS 01363 Classified By: Acting Economic Counselor Shawn E. Flatt for Reason 1.4 (D) ¶1. (C) A senior ExxonMobil representative told Petroleum Attache on May 17 that Venezuelan crude exports have fallen by 300,000 barrels. (COMMENT: We believe, given the context of his remarks, that the representative meant per day. END COMMENT) The representative also stated ExxonMobil employees have noticed a sharp decrease in the number of tankers at the Jose oil terminal. The representative stated ExxonMobil believes that Venezuelan production has dropped sharply in recent weeks but is not sure why. ¶2. (C) COMMENT: As noted in Reftel A, PDVSA has suffered from a long list of managerial, administrative, and operational problems stemming in part from Bolivarian ideology and the firing of thousands of employees as a result of the 2002-3 strike. We are not aware of any recent event that would account for a sudden decline in either production or exports. We also note that it is interesting that PDVSA's recent push to prove to the USG that Venezuela is reliable supplier (Reftel B) happens to occur at the very moment we are hearing reports that exports have suddenly dropped. END COMMENT BROWNFIELD