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Why GAO Did This Study
Venezuela is the world's eighth-largest oil
exporter and among the top 10 countries in
total proven oil reserves. Venezuela also
supplies about 11 percent of current U.S.
imports of crude oil and petroleum products
and wholly owns five refineries in the U.S.
Consequently, Venezuela is a key player in
the future energy security of the United States
and the world.
The current global oil market is tight and
may be more susceptible to short-term supply
disruptions and higher and more volatile prices.
Recently, tension between Venezuela and the
United States has caused concern about the
stability of Venezuelan oil supplies. On several
occasions, Venezuela’s President has
threatened to stop exporting oil to the U.S.
or to close Venezuela’s U.S.-based refineries.
In this context, GAO analyzed: (1) how Venezuela’s
crude oil production and exports of crude
oil to the U.S. has changed in recent years,
(2) the potential impacts of a reduction in
Venezuelan oil exports to the U.S., and (3)
the status of U.S. government programs and
activities to ensure a reliable supply of
oil from Venezuela. Commenting on a draft
of the report, the State and Commerce Departments
generally agreed with the report, but DOE
contended that the report presents an “alarmist
view” of U.S. energy security. We disagree
and believe the report presents a contextually
balanced treatment of the issue.
• Issues
Related to Potential Reductions in Venezuelan
Oil Production - Highlights (PDF)
• Energy
Security: Issues Related to Potential Reductions
in Venezuelan Oil Production GAO-06-668,
June 27, 2006 - Full Report - (PDF)
