THE DEVELOPMENT OF OREMULSION AND VENEZUELAN OIL STRATEGY

This paper analyses the origins of, and the prospects for, Orimulsion, a new power station and industrial fuel developed by Petroleos de Venezuela SA (PDVSA), based on their massive reserves of extra heavy crude oil. After examining the importance of oil for the Venezuelan economy, the paper discusses the attempts by PDVSA to exploit these resources and the problems they have encountered. The paper then charts how Orimulsion was developed and assesses the potential for its use. In conclusion the paper considers the new fuel in the context of PDVSA's wider strategy of diversification.