The President of Petroleos de Venezuela, S.A. (PDVSA), Eulogio Del Pino said in an interview with journalist Jose Vicente Rangel, that the actions of the Bolivarian Government led by President of the Bolivarian Republic of Venezuela, Nicolas Maduro, have been a key factor in oil price recovery.
The energy minister highlighted the role of President Nicolas Maduro, on the need for unity among producing countries in order to increase oil prices. «We have talked about an equilibrium price to justify investment levels and a decent return for all companies and producing countries», said Minister Del Pino.
The PDVSA president recalled the actions and achievements of recent months, regarding the meetings that were held in Doha, Qatar. At the first meeting, on February 15th, two of the largest oil producers, Saudi Arabia and Russia, met with Qatar and Venezuela to work out a freeze production proposal. Minister Del Pino said that the proposal was necessary because «inventory levels were reaching excessively high levels».
Del Pino said the second meeting, held on April 18th, was a historic event, as 18 members and non members of the Organization of Petroleum Exporting Countries (OPEC) met, accounting for more than 60% of world oil production.
The petroleum minister regretted that situations and pressures occurred during this meeting which made it impossible to reach agreements on equilibrium prices. «We were ready to reach agreements to balance them; unfortunately there were a series of situations and pressures that did not make it possible to reach the signing of an agreement, which would have been historic».
Minister Del Pino also said that the current situation of low prices has been the longest in the last 45 years and that the cycle of low prices will be two years next August, which «has a whole range of characteristics affecting investments, financial results. All companies seek financial structuring to get ahead in situations like this, because there have been many high and low price cycles in the oil world».
He also said that all activities that have been carried out in recent months have supported a rebound of the Venezuelan oil basket, which earlier this year had dropped to $19 per barrel and as a result they could only contribute 77 million dollars to the state in January. In recent weeks, the national basket has reached an average price of $40, double the price of January.
«In the northern countries, in midwinter, we have reached values of $10 per barrel and it was the actions of the Bolivarian Government which achieved a price recovery like the one that occurred», said the minister.