Venezuela's crude oil proven reserves surpassed those of Saudi Arabia in 2010, the Organization of Petroleum Exporting Countries (OPEC) said in its annual statistical bulletin. In an annual statistical report recently posted on its website, OPEC said Venezuela's proven crude oil reserves had reached 296.5 billion barrels in 2010, up 40.4 percent year-on-year and higher than Saudi Arabia's 264.5 billion barrels. In the long run, the boost in reserves, which comes along with an upgrade from Iran and Iraq, may empower members of the group who favor a defense of high prices. However, there are doubts over whether all of Venezuela's heavy oil discoveries are actually viable economically. The data broadly confirms Venezuela's statements, which said it had reached this level of reserves in January this year. OPEC normally relies on its members' assessments for its statistical data. Iraq's and Iran's proven reserves were also respectively upgraded by 24.4 percent to 143.1 billion barrels, and by 10.3 percent to 151.2 billion barrels, roughly in line with the countries' earlier disclosures. Venezuela, Iran and Iraq were part of a group that refused to hike output at the June 8 OPEC meeting. Analysts have questioned how economic Venezuelan reserves additions could be, as most come from the heavy and extra-heavy oil in the Orinoco Belt, which is difficult and expensive to extract. Meanwhile, traders and analysts say that there is no sign yet of the kind of shortage to mandate another dip into the West's emergency oil reserves when a 30-day deadline for assessing the impact of a first release expires at the end of this week. And now that the market has been taught to brace for the unexpected, it would take an even bigger shock than last month's nearly 60 million-barrel supply injection to have a significant impact on prices of more than $116 US a barrel for Brent crude. Analysts from across the producer-consumer divide agree that does not mean another release will not happen this year. Some do not even rule out unilateral action by top oil consumer US, which provided 30 million barrels of the June 23 release. "The IEA will undoubtedly repeat the release of oil from inventory in the last quarter of 2011 but probably not again this summer," said Sadad Al-Husseini, an oil analyst and former top official at Saudi Aramco. "We don't see a strong response to the incremental Saudi oil offerings and that must mean that the market cannot absorb any additional oil supplies at the current prices. "By year-end, the situation will be different. This is because supplies will again be lagging demand and will remain so over the next two years." For another International Energy Agency release to take place, it would have to be endorsed by all 28 members of the energy consumer body. Germany and Italy are likely to resist any plans for a second release for now, a French government source told Reuters last week.
