Venezuelas actual level of crude oil production is difficult to determine, with the country and independent industry analysts offering different numbers. According to statements by the Venezuelan government, the country produced 3.1 million barrels per day (bbl/d) of crude oil in 2004. On the other hand, most industry analysts and EIA estimated that the country actually produced 2.5-2.6 million bbl/d of crude oil in 2004, as they believed the country had not fully recovered from the strikes of 2002-2003 and noted that GDP data released by the Venezuelan Central Bank supported a lower level of production. Further, in a statement filed with the U.S. Securities and Exchange Commission (SEC) in August 2005, PdVSA reported that nationwide crude production in 2003 was 2.76 million bbl/d (PdVSA must file regular financial statements with the SEC due to its external debt obligations). In the past, Venezuela regularly exceeded its OPEC production quota. However, since his election in 1998, President Chavez has maintained a policy of strong adherence to the countrys quota, seeking to increase oil revenues through higher world oil prices rather than increased production. In order to meet its quote, Venezuela has occasionally shut-in some production and delayed bringing new capacity online. Most independent analysts believe, though, that Venezuela is currently producing well below its quota of 3.22 million bbl/d since the 2002-2003 strike.

According to PdVSA, Venezuela exported 2.03 million bbl/d of oil and petroleum products in 2003. The United States is the most important destination for these exports, receiving 68 percent of total oil exports in 2003, according to PdVSA export data and EIA import data; in addition, much of the oil that Venezuela exports to the Caribbean is later re-exported to the United States as refined products. In recent years, Venezuela has ranked consistently as one of the four top sources of U.S. petroleum imports, along with Canada, Mexico, and Saudi Arabia. In 2004, Venezuela exported 1.53 million bbl/d of crude oil and refined products to the U.S., representing 11.8 percent of all U.S. oil imports. The U.S. Gulf Coast is the largest recipient of these imports, receiving 78 percent in 2004. In addition to being a major supplier to the United States, Venezuela also provides significant quantities of oil to its regional neighbors. Under the auspices of the San Jose Accord, Venezuela and Mexico provide eleven Central American and Caribbean nations (Barbados, Belize, Costa Rica, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Nicaragua, Panama and the Dominican Republic) with crude oil and products under preferential terms. Venezuela also supplies Cuba with 78,000 bbl/d of oil on favorable financing terms under an agreement originally signed between President Chavez and Cuban President Fidel Castro in 2000.Recently, Venezuela has pushed the creation of regional oil initiatives for the Caribbean (Petrocaribe), the Andean region (Petroandino), and South America (Petrosur), and Latin America (Petroamerica). The initiatives include assistance for oil developments, investments in refining capacity, and preferential oil pricing. The most developed of these three is the Petrocaribe initiative, with 13 nations signing a preliminary agreement in 2005. Under Petrocaribe, Venezuela will offer crude oil and petroleum products to Caribbean nations under preferential terms and prices, with Jamaica as the first nation to sign on in August 2005. In April 2004, PdVSA completed the construction of a new oil export terminal at the eastern port of Jose, increasing the countrys crude oil export capacity by 230,000 bbl/d.