Barinas seeks to revive its oil output amid electricity crisis

The state of Barinas is trying to revive its oil production amid an electricity crisis that has led to the mass closure of businesses, according to the portal Banca y Negocios. The state, which produces light crude and is part of the Barinas-Apure Petroleum Basin, faces operational difficulties due to structural failures in public services that are holding back the sector's expansion.

The regional oil infrastructure depends on a constant power supply to operate wells and keep cold chains running for local commerce. Prolonged service interruptions have left most wells in the area inoperative, although the Colombian company Colven Business is currently developing a service project to reactivate some wells under a scheme in which the Venezuelan state pays in crude, according to the information published by Banca y Negocios.

The impact of the electricity crisis extends beyond the oil industry and hits commercial and agricultural establishments in the region hard. Businesses that depend on constant refrigeration to preserve perishable food are recording millions in losses and permanent closures, as occurred with some 200 butcher shops over the past three months, according to data from the Barinas Butchers' Association cited by the outlet.

This picture of operational contraction contrasts with the country's broader macroeconomic outlook. According to data from the International Monetary Fund (IMF), Venezuela's real GDP grew 4.0% in 2023, expanded 5.3% in 2024 and slowed to 1.5% in 2025, while the fund's projections point to growth of 4.0% in 2026 and 6.0% in 2027.

On the foreign trade front in oil, El Nacional reported that Venezuelan crude exports to the United States rose 170%, driven by Citgo, which points to a partial revival of shipments to the North American market amid the domestic infrastructure challenges.