When reports emerged about the U.S. military’s operation to apprehend Nicolás Maduro in Venezuela earlier in the month, Barry Blacklock started receiving a flurry of messages on his phone. Blacklock, who resided in Venezuela for 17 years and worked in the energy industry before leaving in 2009, is now facilitating a group of companies interested in investing and supplying equipment to Venezuela. The country is expected to see a surge in demand for their services in the coming years.
Alberta, known for its experienced oil workers and companies operating globally, is cautiously optimistic about the recent developments in Venezuela, including President Trump’s plans to revitalize the oil sector. However, concerns persist regarding the unstable political situation and the extent of U.S. involvement.
Venezuela holds the world’s largest proven oil reserves, estimated at 303 billion barrels, but its oil industry has suffered from a lack of investment, equipment, and technology for the past two decades due to corruption and state control. This presents an opportunity for foreign companies, particularly those in Alberta with expertise in heavy oil similar to Venezuela’s crude.
Despite the potential profitability, companies are wary of the challenges of operating in Venezuela, such as uncertain tax and royalty structures, safety concerns for Canadian workers, ongoing U.S. sanctions, and the duration of U.S. presence in the country. Rebuilding the oil industry would require significant investments and years of effort due to the deteriorated infrastructure.
While some industry leaders express interest in supporting Venezuela’s energy sector, they emphasize the need for stability, legal protections, and workforce security. Pedro Pereira-Almao, a former oil industry manager, highlights the importance of political and economic backing from the U.S. before considering ventures in Venezuela.
Acknowledging the potential market competition that Venezuelan oil could pose to Canadian exports, especially in the heavy oil sector, stakeholders like Blacklock remain cautious about the implications for Alberta’s energy industry. Despite the business prospects, concerns linger about the impact on Canadian market share once Venezuelan oil production resumes.