IHS Markit observes that Venezuela was once a major global oil power,producing more than 3 MMbbld in the mid-to late-1990s.The nation is a founding member of OPEC.But oil industry decay-it never fully recovered from the 2002-2003 Petroleos de Venezuela SA(PDVSA)strike and brain drain-means the U.S.ban on Venezuelan oil imports is not a major oil supply shock.North Dakota produces more crude oil than Venezuela.For context,the volume of U.S.imports from Venezuela involves only a little more oil than the 400,000 bbld estimated reduction in western Canadian supply as a result of production curtailments that were imposed in Alberta in January.Prices for Alberta oil fell in October to record lows because of congested pipelines that backed up crude in storage and prompted curtailments.The oil cuts averted disaster for many small producers that were selling,in some cases,below cost,In addition,the 500,000 bbld to 600,000 bbld of Venezuelan oil previously exported to the U.S.could be redirected elsewhere,leading to an even smaller reduction than in Alberta.
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