After a period when many energy companies believed that Venezuela was still too risky for investment, many of them are taking a second look.
After Exxon Chief Executive Darren Woods described the country as “uninvestable” in January, the company, together with ConocoPhillips, recently sent technical teams to assess prospects to revive Venezuela’s oil fields as the government moves to change laws that make the environment more favorable to foreign investors. More recently, President Trump’s energy adviser met with Venezuela’s acting president with a delegation that included Hunt Oil, Crossover Energy, HKN, and Mercuris, signing memorandums of understanding to lay the groundwork to operate.
In addition, Chevron recently expanded its footprint in Venezuela and is on track to raise its oil output by 50% over the next 18 months. Chevron Chief Executive Officer Mike Wirth commented that those recent legal changes “moved things in a positive direction.” According to market-intelligence firm Kpler, the United States imported 457,000 barrels a day of Venezuelan crude in March, the most since January 2019.
IAM Member Impact: The revised interest in foreign investment represents good news for IAM members in the country and those members working for corporate accounts with activity to and from Venezuela.
Source: The Wall Street Journal