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Annual Report: No. 23 Venezuela- Giant oil producer sees gains

June 16th, 2006

OPEC producer Venezuela saw double-digit growth in the value of its trade with Georgia.

The governments of Venezuela and the United States might be duking it out in the political arena, but that’s not hindering energy shipments from South America’s oil giant.

Four of Georgia’s top five imports from Venezuela in 2005 were linked to fossil fuels. Those energy imports dominated an overall trade exchange worth $631 million, nearly 35 percent higher than in 2004.

Imports of crude oil from Venezuela, one of the founding members of OPEC, rose 40.5 percent to nearly $313 million. At the same time, non-crude imports rose 18 percent to end the year at $198 million.

	Top Georgia imports from Venezuela
Rank		Value	Change
	Total all commodities	$549,951,352.00	28.10%
1	Crude oil from Petroleum, bituminous minerals	$312,796,484.00	40.50%
2	Oil, not crude	$198,022,708.00	17.80%
3	Coal, briquettes	$12,438,746.00	-19.10%
4	Petroleum products	$11,200,939.00	618.00%
5	Artificial corundum, other aluminum oxide	$8,450,752.00	6.10%

Imports of other hydrocarbon products, principally asphalt and tar, exceeded $11 million, a gain of a whopping 618 percent. However, that number may fall. In April 2006, Citgo announced that it would sell its Georgia asphalt refinery. Citgo is the U.S. subsidiary of Venezuela’s government-owned oil company, PDVSA.

The jump in petroleum prices on global markets has boosted the Venezuelan economy, which is heavily dependent on oil exports. In turn, the more vibrant economy has sparked greater demand for U.S. goods.

Georgia’s exports to the South American country doubled in 2005, led by a dramatic increase in regional jet parts. Georgia sent $19.6 million-worth of jet parts to Venezuela. In 2004, the figure was $5.6 million.

Rank	Top Georgia exports to Venezuela	Value	Change
	Total, All Commodities	$81,094,994.00	107.20%
1	Regional jet parts	$19,596,533.00	252.40%
2	Pigments and other coloring matter	$4,860,039.00	2870.50%
3	Chemical woodpulp	$4,063,762.00	226.40%
4	Kraft paper & paperboard	$3,830,547.00	328.70%
5	Kaolin clays	$3,732,265.00	-4.90%

But paints, varnishes and pigments posted the fastest growth. Georgia sent Venezuela $4.9 million in paints and pigments last year – nearly 290 times more than in 2004.