Reports of U.S. military actions targeting and apprehending Venezuela’s Nicolás Maduro earlier this month prompted an influx of messages to Barry Blacklock’s phone. Blacklock, a former resident of Venezuela who now resides in Mexico, had spent 17 years in the country as a permanent resident working in the energy industry until 2009. He is currently involved in coordinating a group of companies interested in investing and providing equipment to Venezuela, anticipating a surge in demand for their services in the future. Blacklock, an experienced entrepreneur in the international oil and gas sector, organized a similar initiative in 2019 amid speculations of a potential regime change that did not materialize.
“A change is on the horizon, but the specifics are still unclear,” stated Blacklock, reflecting on the evolving situation. The recent U.S. intervention in Venezuela and President Donald Trump’s expressed intentions to revitalize the nation’s oil sector have stirred cautious optimism within Alberta’s energy community. However, uncertainties persist, including the unstable political landscape in Venezuela and questions regarding the extent of U.S. involvement.
An Emerging Opportunity
Venezuela boasts the largest proven crude oil reserves globally, estimated at around 303 billion barrels. Despite this resource wealth, the country’s oil industry has suffered from decades of neglect in terms of investment, equipment, and technology, largely due to governmental corruption, hostility, and state control.
“Many oilfields are operating under capacity due to neglect and equipment theft,” Blacklock explained. “Significant infrastructure replacement will be necessary.” Foreign companies, particularly those based in Alberta with expertise in heavy oil similar to Venezuela’s crude, see potential for profitable ventures.
“Canadian firms possess advanced technologies that could benefit Venezuela,” stated Amit Mankekar, a Canadian-Colombian consultant. Adam Waterous, the executive chair of Strathcona Resources, expressed readiness to dispatch a technical team to Venezuela from his company, one of Canada’s top oil producers, if requested.
Prudent Caution
Amid the excitement over potential opportunities, industry stakeholders emphasize the need for caution given the challenges of operating in Venezuela. Concerns range from uncertain tax and royalty structures to workforce safety in the country.
<p"Blacklock raised questions about the fairness of taxation and the safety of Canadian workers in Venezuela. Moreover, the persistence of U.S. sanctions and the extent of U.S.-Venezuela collaboration pose additional hurdles for Canadian firms.
The Trump administration is taking over Venezuela’s oil industry following the removal of President Nicolás Maduro. Andrew Chang breaks down the significant obstacles the U.S. faces, President Donald Trump’s claims of ‘stolen’ oil, and explores whether the operation is worth the trouble.
During a recent meeting at the White House, President Trump urged major oil executives to allocate at least $100 billion for Venezuela’s oil sector revival. However, the response from industry leaders was reserved, with concerns about past asset seizures and the current investment climate in Venezuela.
“Given our prior experiences and the present conditions, reinvestment in Venezuela is currently unfeasible,” remarked ExxonMobil CEO Darren Woods.
A Sobering Reality
Foreign companies eyeing Venezuela must prioritize stability,