The Guasar Basin, near the Colombian border, is the major coal producing region in Venezuela. Coal production has been limited during the last several years by strains on infrastructure and transportation. As part of Venezuela's new energy policy, the government announced in April 1999 that it wants to increase production of high-quality coal to 21 million tons per year by 2008, which will require the construction of a railroad. PdVSA's refinery ownership is expected to increase in the coming years, to insulate the company from future decreases in the price of crude oil. The port and docking stations can serve over 120 tankers per month.
Current plans call for exploration to increase Venezuela's proven reserves.
The country produced only about 1 Tcf in 1998. Domestic demand is relatively low, largely because Venezuela's highly developed hydro industry thus far has precluded the use of gas for power generation. The Ch vez administration plans to dramatically increase production and consumption of natural gas in the coming years, as part of an overall shift away from the country's economic reliance on oil. PdVSA traditionally has had a monopoly on Venezuelan natural gas production. Venezuela s recently elected national government is placing strong emphasis on the development of the natural gas and petrochemical sectors as a means of diversifying the economy.