Energy Expert Warns Venezuela’s Oil Deal Won’t Quickly Boost Supply
An energy expert highlighted that despite an announced U.S.-Venezuela oil deal involving access to 65 billion barrels of proven reserves, the timeline for meaningful production remains long due to infrastructure and operational challenges. The agreement reportedly involves a 25-year lease with U.S. companies controlling 55% of the project, but experts caution that Venezuela’s output has declined from 3.2 million barrels per day in 1997 to just 1.2 today. The deal names Chevron (CVX), Exxon Mobil (XOM), and ConocoPhillips (COP) as potential participants, though the legal structure remains unclear. Analysts warn that without significant capital investment and technical expertise, much of Venezuela’s oil will remain stranded underground for years to come.
Topics: oil reserves production delays U.S. energy companies Venezuela