Barry Blacklock’s phone was abuzz with messages when news broke about U.S. forces seizing Venezuela’s Nicolás Maduro earlier this month. The Calgarian, who lived in Venezuela for 17 years and worked in the energy sector before leaving in 2009, is now coordinating a group of companies looking to invest in Venezuela. Blacklock, an experienced entrepreneur in the international oil and gas industry, believes a change is imminent in Venezuela, creating potential opportunities for foreign companies, including those from Alberta.
Venezuela holds the world’s largest proven crude reserves, but its oil industry has suffered from neglect and lack of investment for years. Many oilfields are not producing due to stolen or deteriorated equipment, presenting a significant opportunity for foreign companies with expertise in heavy oil, a specialty of many Canadian firms.
While there is cautious excitement in Alberta’s energy sector about the prospects in Venezuela, there are concerns about the challenges of operating in the country. Questions about taxation, royalties, safety, and uncertainties surrounding U.S. sanctions and involvement in Venezuela remain.
Industry leaders emphasize the need for stability, legal protections, and security for the workforce in Venezuela. Pedro Pereira-Almao, a former oil industry professional with experience in Venezuela, highlights the importance of government stability and contract enforcement for foreign companies considering investments in the country.
Despite the potential for profit, companies are wary of the risks involved in operating in Venezuela. The rebuilding effort in Venezuela’s oil industry is expected to be a long and costly process, requiring substantial investment and time to restore infrastructure and production capabilities.
While some executives express caution about re-entering Venezuela, others see an opportunity to contribute to the country’s energy industry if conditions improve. Collaboration between international companies and local talent could be a way forward, although challenges such as political and economic uncertainties need to be addressed before significant investments are made.
The impact of Venezuela’s oil resurgence on the global market, including potential competition with Canadian oil exports, is a concern for industry players. Despite the mixed feelings about the business opportunities in Venezuela, there is a recognition that the country’s oil production could affect market dynamics and potentially impact Canadian oil exports in the future.
