Can Venezuela become again a reliable oil exporter to the US?

[jose chalhoub + 388]

In recent weeks there were news and reports about discussions and meetings between Biden administration representatives and Maduro government in Caracas over the potential lifting of sanctions against Venezuela's ol industry imposed during the Trump administration after banning russian oil imports after the invasion on Ukraine as the White House continues to seek alternatives to the ban on russian oil. But with the different years old problems facing Venezuela's oil industry that go well before the sanctions, it will likely take time for this to be a feasible scenario and also considering the political hurdles facing this and what demands the Biden administration as much as the Maduro government will exchange if Washington moves ahead with more waivers and licenses to US oil companies to invest in the decayed oil production in Venezuela even if showing some slight signs of recovery in recent months. 

[Selva + 252]

Hello Jose. Nice to see you again. Welcome back!!!

[jose chalhoub + 388]

42 minutes ago, Selva said:

Hello Jose. Nice to see you again. Welcome back!!!

nice to be back and thanks!

[nsdp + 449]

Jose,  with the change in political climate in Washington, I hope we keep our nose out of Venezuelan politics.  We tolerated much worse in Columbia (Escobar) and El Salvador and installed regimes like Somosa and Pinochet. Infrastructure needs to be rebuilt, but I am sure Venezuelan crude will be welcome in the Texas and Louisiana refineries.   We used it for years and and we know how to crack it. 

[jose chalhoub + 388]

Yes but I think any return of Venezuelan oil to US refineries needs to come with political demands and changes in Venezuela from the current administration because if it happens otherwise under this current system without significant overhauling of our oil sector then it won't work. We need lots of investments for our refineries, our wells, better wages to our oil workers and many more. 

[jose chalhoub + 388]

But with the rise of oil production in neighbors like Guyana and also the potential of Colombia and Brazil to rise their production as well could definitely add more obstacles to any recovery of our production and further deals with Washington and Venezuela considering also that there are still russian and Chinese oil companies operating here in Venezuela which could represent maybe a bargaining chip for the White House to any new moves in the negotiating table with the government of Maduro and also how the issue of US based CITGO will be. 

[nsdp + 449]

Maracaibo crude has competition from other light crude.   Orinoco does not really have competion.  Maya is about as close as it comes unless you go to the  middle east.   The heaviest from your neighbors is Brazilian  and it has too much sulfur. Politically it wasn't any better under Carlos Perez and later. I was around Amoco(I had studied two summers at Queteraro) when Amoco tried to negotiate compensation for the fields Perez nationalized.   He and his amigos stole as much as today's government.  The only difference is who gets the money.  As for politics, we do better when we observe FDR's Good Neighbor policy and keep our nose out of the tent.

Edited April 17, 2022 by nsdp
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[Anisha fatima + 8]

Wonderful information, I am very glad to read this thread! Thanks for the good work.