Venezuelan Oil Industry Shrinks By 5.3 Percent In 2007

Venezuela’s oil industry shrank by 5.3 percent in 2007, according to the nation’s Central Bank. In 2007 it contributed only $3.14 billion to the country’s gross domestic product.

That was in sharp contrast to previous years when the oil industry yielded $3.3 billion (7.10 trillion bolivares) in 2006 and $3.38 billion (7.25 trillion bolivares) in 2005.

But despite the declining share of the oil industry Venezuela’s economy still grew by 8.4 percent in 2007. The dip in oil contribution was made up by the non-oil sector which had a 9.7 percent growth.

The downtrend in oil revenues took place despite a 16 percent hike in the average basket price for Venezuelan crude oil. The price of crude climbed to $65.13 per barrel in 2007 from $56.35 per barrel in 2006.

AHN