Venezuela Wants to Diversify Its Economy and Reduce Its Dependence on Oil. Its Bright Idea: Exporting Jellyfish

Crude oil exports from Venezuela fell by 9% in September due to several factors, including blackouts, equipment failures within state-owned oil company PDVSA, U.S. sanctions, unclear election results, and ex-presidential candidate Edmundo González’s exile. These challenges continue to impact Venezuela’s oil export industry. However, in response, the Latin American nation has begun to diversify its economy by exporting jellyfish.

Cannonball jellyfish. Venezuela has shifted its focus and has exported more than 156 tons of cannonball jellyfish (Stomolophus meleagris) to South Korea. The initiative, led by the Ministry of Fisheries and Aquaculture, aims to promote non-oil exports amid ongoing sanctions and geopolitical tensions.

The international jellyfish market. In many parts of Asia, jellyfish are a traditional and medicinal food source. Countries such as China, Japan, and South Korea have a growing industry centered around jellyfish consumption. While some jellyfish species can be toxic, others, like the cannonball and the nomad jellyfish, are considered safe for humans.

Venezuela is eager to enter the jellyfish export market, joining countries like Argentina, Mexico, Peru, and Colombia, which have been successfully exporting for years. Venezuela holds a competitive advantage due to its natural abundance of jellyfish, and current trade tensions could work in its favor. The country plans to invest heavily in aquaculture to bolster the industry.

Are cannonball jellyfish dangerous? The cannonball jellyfish has a toxic filament in its tentacles that can cause various health issues, ranging from rashes to fatal reactions. Its toxins can lead to respiratory problems such as asphyxia and anaphylaxis, but it’s still safe for human consumption.

Reducing dependence on hydrocarbons. According to the Ministry of Fisheries and Aquaculture, the goal is reducing hydrocarbon dependence. Although Venezuela possesses one of the largest oil reserves in the world, it faces significant challenges. These challenges include deteriorating infrastructure, lack of investment, international sanctions, and internal mismanagement of the state-owned company PDVSA.

A global overview. Amid ongoing conflict in the Middle East, OPEC’s Secretary General Haitham al Ghais recently visited Venezuela to assess the state of the world energy market. Currently, PDVSA produces approximately 922,000 barrels per day, a significant decline from previous years. This drop is partly due to U.S. sanctions that restrict its ability to trade freely.

Image | Sebastian Ziebell

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