Venezuela 2010 oil output lowest since 2002 strike

[naaman fletcher]

Venezuelan oil production fell in 2010 to its lowest level since a strike froze output eight years ago in a worrying sign for President Hugo Chavez, who uses oil revenue to pay for his socialist revolution.

Data released by the Oil Ministry on Tuesday showed production was 2.78 million barrels per day last year, compared with almost 3 million bpd state oil company PDVSA says the country produced the year before.

South America's top oil exporter, Venezuela sits on some of the largest oil reserves in the world. Output has not been so low since opponents of Chavez tried to oust him by shutting down the oil industry in a months long strike that started in 2002.

There are a number of reasons for the current decline, including lingering OPEC output cuts and bad weather in the last quarter. Underlying PDVSA's problems, however, is low investment in aging fields and maintenance problems stemming from a wave of nationalizations in recent years.

http://af.reuters.com/article/energyOilNews/idAFN0116695620110301