Venezuela’s Oil Revival Is Slower Than the U.S. Hoped
Widens Sanctions What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… More than half a year after the U.S.
captured and extracted Nicolas Maduro from Venezuela, the biggest American oil firms haven’t returned to operating oilfields in the world’s largest oil reserves holder.
Chevron, which has operated in Venezuela throughout Maduro’s reign, is extracting and exporting oil to the U.S., but neither ExxonMobil nor ConocoPhillips have returned as negotiations led by Venezuela’s state oil firm PDVSA are not progressing as fast as the U.S.
Administration probably thought in January when it extracted Maduro and hailed the big U.S.
There have been some deals signed in recent months, with service providers and smaller American oil companies, which seem more willing to take the risks of operating in the country, which has yet to see a stable political and fiscal environment for large-scale operations.
Earlier this month, Venezuelasigned dealswith oilfield service major SLB and Hunt Oil Co.
as part of efforts to boost investment in its key energy industry, the country’s oil minister, Paula Henao, said.Related: The 60 Day Peace Window Closed, and Trump’s Iran Strategy May Shift Dramatically The agreement with SLB follows earlier reports about the oilfield services company sealing a long-term deal with the Venezuelan government to reverse a major decline in oil production and modernize the country’s oil industry.
Hunt Oil Company, for its part,saidit was one of the first American companies to sign an agreement with PDVSA to help expand Venezuela's oil and gas production.
“We're proud to play a constructive role in revitalizing and growing the country's oil and gas production,” said Hunter Hunt, CEO of Hunt Oil Company.
oil companies moved to sign deals with Venezuela’s PDVSA, Exxon and ConocoPhillips are taking their time.
Negotiations have reportedly hit a snag in recent weeks, the Wall Street Journalreportedat the end of July, citing sources with knowledge of the talks.
The setbacks in the negotiations include U.S.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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