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West Banks on Venezuela for Oil Security
Developing
In Short: The U.S. and its allies are positioning Venezuela as a strategic pillar of Western energy security, with a new agreement giving U.S.-aligned interests access to 65 billion barrels of proven reserves.
The U.S. and its allies are positioning Venezuela as a strategic pillar of Western energy security, with a new agreement giving U.S.-aligned interests access to 65 billion barrels of proven reserves.
Oilfield service provider Halliburton and engineering firm WESCA have signed memoranda of understanding with Venezuelan entities to develop heavy oil resources in the Orinoco and Maracaibo basins.
According to Baker Hughes data, Venezuela had only two active onshore drilling rigs at the end of July, though Schlumberger (SLB) has positioned up to 15 rigs that could return to service within a year.
The White House Fact Sheet from August 31 outlines plans to expel foreign adversaries from the Western Hemisphere and reassert the Monroe Doctrine, emphasizing the importance of Venezuelan oil fields previously controlled by Russian and Chinese firms.
The Fact Sheet also highlights the need for robust, strategic, and defensible supply chains to support the revitalization of manufacturing and energy sectors after years of globalist decline.
Simon Watkins, a former senior FX trader and salesman, notes that the West's search for alternative oil and gas supplies has intensified since sanctions on Russia following its invasion of Ukraine.
Halliburton and TotalEnergies are among the latest firms to sign agreements in Venezuela, playing central roles in the West's efforts to replace lost oil and gas supplies.
The West's plan in Venezuela faces significant challenges, including underdeveloped infrastructure and the need for substantial investment to unlock the country's vast oil reserves.
What this adds
The White House Fact Sheet emphasizes the strategic importance of Venezuela's oil reserves in countering the influence of Russia and China.
The plan's success hinges on the ability to rapidly increase drilling and production capacity in Venezuela, which currently has limited active rigs.
What's still developing
- Saudi East-West Pipeline Moves 5.8 Million Barrels as Red Sea Route Recovers Simon Watkins is a former senior FX trader and salesman, financial journalist, and best-selling author.
- Centuries ago, the untamed jungles of Venezuela’s Orinoco Basin helped power the myth of El Dorado, a city made entirely of gold.
- So, what is the West’s plan in Venezuela from now on and will it work?
Sources
- Crude Oil Prices Today | OilPrice.comlink