VENEECONOMIST
Analysis Type D — Risk · AUGUST 5, 2026

Venezuela's 2026 power rationing: the electricity the oil target consumes

The government activated its electricity- and water-saving plan for the second time this year, and the same day promised 4,800 megawatts of thermal generation by December. The variable neither measure quantifies: producing crude consumes 40 to 45 kilowatt-hours per barrel, drawn from the same grid being rationed.

Published August 5, 2026

On August 2 the government activated its electricity- and water-saving plan for the second time this year, this time ahead of a severe El Niño episode forecast for August through October. The same day it committed to bringing 4,800 megawatts of thermal generation online before December. Both measures coexist with a third figure neither of them mentions: the official oil production target for year-end requires electricity from the same grid now being rationed.

Producing crude consumes electricity in volumes that rarely enter the public discussion. Energy analyst Nelson Hernández places the grid electricity-intensity index within the international range of 40 to 45 kilowatt-hours per barrel, and documents the concrete effect in Venezuela: when output rose from 823,000 to 988,000 barrels per day during the first quarter, the increase required some 300 additional megawatts from the public system.

Keep reading — free

Sign up and read 3 analyses a month, free

Create your reader account with your email. No password, no card.

No password · The full analysis lands in your inbox

Want no limits? Subscribe to Explorer from $29/mes
Classification
Analysis Type DRisk
Energía · Sistema Eléctrico
August 5, 2026
Free subscription · 1-click unsubscribe

Get it in your inbox, free

Subscribing you to Daily VE Pulse.

VENE · ECONOMIST Intelligence Unit · Informational analysis. Does not constitute investment, legal or tax advice. Vene Economist is not a credit rating agency; the "VE Verdict" is a proprietary editorial indicator, not a credit rating. Always verify against the primary source before making decisions.

FURTHER READING

04
ANÁLISIS · RIESGO PAÍS · INSTITUCIONES Y OPINIÓN

Diálogo en Venezuela 2026: ninguna de las dos delegaciones tiene mandato electoral vigente

El encargo presidencial acumula más de doscientos días sobre un máximo constitucional de 180. La Asamblea de 2015 prorroga sus funciones desde que su período venció en 2021. Y los documentos que abrieron el proceso lo dejan por escrito: cada parte se atribuye su título máximo y le niega el suyo a la otra.

VE PULSE · 04-AUG-2026

The oil companies meant to enter Venezuela still have not signed, and they disagree on whom to blame

The permit to operate in Venezuela already exists; the contract that makes it financeable does not. And while blame for the jam is debated, the one not drilling is still the same.

OFAC · GL 5Y

GL 5Y — PdVSA 2020 8.5% Bond (on or after September 17, 2026)

Authorizes, on or after September 17, 2026, transactions related to, the provision of financing for, and other dealings in the Petróleos de Venezuela, S.A. 2020 8.5 percent bond that would otherwise be prohibited by subsection 1(a)(iii) of E.O. 13835. Replaces and supersedes GL 5X in its entirety effective August 3, 2026, moving the effective date from August 4 to September 17, 2026. Until then no authorization is in effect: the sale or transfer of the CITGO Holding shares pledged against the bond remains prohibited absent a specific OFAC license.

SECTOR BRIEF · VE-ENERGY-UPSTREAM

Venezuela Upstream July 2026: LOH Regulation drops PDVSA (Gaceta 7,052), Repsol signs Horcón MoU, OFAC amends GL 46C-54A, Brent normalizes to $81

The first comprehensive Hydrocarbons Law regulation since 1943 opens upstream to privates without a mandatory joint venture; the VE Score eases from 94 to 84 on Brent's correction (May $104 → July $81), not regulatory deterioration.