Venezuela calls on US companies to invest in oil and gas
Venezuela offers over 916 exploration opportunities for foreign investors.
1Venezuela's energy potential
Venezuela's Oil Minister Paula Henao highlighted the country's vast potential, with over 916 exploration opportunities awaiting foreign investors. Venezuela boasts 192 trillion cubic feet of natural gas reserves and over 300 billion barrels of proven oil reserves, ranking among the world's leaders. Henao emphasized at the Houston event that Venezuela is a largely untapped resource waiting to be discovered.
2First steps by US companies
Alongside Chevron, companies like Hunt Oil and SLB have signed new production agreements with Venezuela. Hunt Oil CEO Hunter Hunt expressed pride in being among the first American companies to partner with PDVSA to expand Venezuela's oil and gas production. These deals mark the initial concrete steps in Venezuela's energy sector transformation.
3Small-scale investors lead the way
While major players like Exxon, BP, and Shell remain cautious, smaller private oil producers like Crossover Energy are making moves. Crossover CEO Eric McCrady believes Venezuela's mature and exploratory oil fields offer more upside than US shale acreage. The company has acquired a local operator to establish its presence and plans to begin operations in January.
4Regulatory changes and risks
McCrady noted that risks in Venezuela are predominantly above-ground, including workforce, equipment availability, and political factors, while geological risks are lower. Recent changes to hydrocarbon laws aim to provide more contractual certainty for investors. The country is working to rebuild trust after decades of reform and renationalization cycles.
5Current production levels
Venezuela's oil production has increased from under 1 million barrels per day last year to over 1.2 million barrels, largely through Chevron-led optimization of existing wells. The country produced over 3 million barrels daily at the start of the century. Analysts project Venezuela could return to 3 million barrels daily by 2040 as global demand persists.
6Long-term projections
Rystad Energy's Simon Sjøthun predicts Venezuela could reach 3 million barrels daily by 2040. McCrady is more optimistic, forecasting 3.5 million barrels within 5-10 years, citing how quickly the Permian Basin expanded. He believes US drilling technology could significantly boost Venezuela's output, provided the legal framework stabilizes.
7Infrastructure challenges
McCrady emphasized the need to upgrade Venezuela's power grid and develop natural gas transportation infrastructure. June's devastating earthquakes delayed planned January operations. Investors are awaiting improved access to equipment and services as the country works to overcome decades of underinvestment and isolation.
8A historic opportunity
This moment represents possibly the last major chance for Venezuela's energy sector to recover. With Maduro's ouster and revised hydrocarbon laws, foreign investors are cautiously returning. After 25 years of isolation, US investment could help Venezuela rapidly realize its energy potential, though significant above-ground challenges remain.
Original article: Fortune — Venezuela, ABD şirketlerine petrol ve gaz yatırımı çağrısı yaptı