By OGJ editors
HOUSTON, Mar. 14 -- The International Energy Agency has reclassified Venezuelan extra-heavy oil in its reports of worldwide oil production.
Since 2002, IEA has included Venezuela's 17º-32º-gravity synthetic crude, which is upgraded from 8º-9º-gravity Faja crude produced in the Orinoco Belt, in its category for Organization of Petroleum Exporting Countries NGL and nonconventional oil.
Beginning in its March Monthly Oil Market Report, IEA includes Venezuelan heavy oil in its "OPEC crude" category.
The change shifts about 600,000 b/d of production into a category deemed subject to Venezuela's OPEC quota. Venezuelan synthetic crude comes from four upgraders operated by joint ventures involving state-owned Petroleos de Venezuela SA and private partners.
Under the new method, IEA will report as production the heavy oil feedstock charged to upgraders and not synthetic crude output, which runs about 10% below feedstock charge.
In the old method, IEA put the synthetic crude in the OPEC NGL and unconventional category and treated heavy oil not upgraded as conventional crude. The change slightly increases total Venezuelan oil production.
Venezuela includes about 34 billion bbl of Faha extra-heavy crude in its reserves estimate of 78 billion bbl.
About 160,000 b/d of Orimulsion, a mixture of heavy oil, water, and a surfactant sold as a boiler fuel in competition with coal, will continue to be counted as OPEC NGL and unconventional oil.