• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 2 hours China's Blueprint For Global Power
  • 59 mins Here's your favourite girl, Tom!
  • 9 hours IMO 2020:
  • 2 hours Brexit agreement
  • 5 hours The Problem Is The Economy, Not The Climate
  • 11 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 6 hours Australian Hydroelectric Plant Cost Overruns
  • 57 mins Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 1 day Idiotic Environmental Predictions
  • 19 hours The Ultimate Heresy: Technology Can't Fix What's Broken
  • 1 day NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 3 hours 5 Tweets That Change The World?
  • 2 hours Bloomberg: shale slowing. Third wave of shale coming.
Alt Text

Is This The World’s Newest Oil Benchmark?

Abu Dhabi, the oil producing…

Alt Text

Iran's 3-Part Plan To Outsmart Sanctions

Iran’s priority in continuing to…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Is Venezuela Trying To Hide Oil Assets With This Bizarre Move?

Strange and unsettling developments emerging late last week — from one of the world’s key oil-producing countries.

Venezuela.

The Venezuelan government Friday issued a decree that, for the first time, allows the country’s military to take direct involvement in natural resources projects. Related: There Will Be No OPEC Cut

The government will do this by creating a new military company. Which is authorized to participate in both oil field services, as well as in Venezuela’s mining sector. With the new firm going by the name of Cia. Anonima Militar de Industrias Mineras, Petroliferas y de Gas — or simply, Camimpeg.

The company’s board of directors and president will be appointed by Venezuela’s defence minister.
The government said that Camimpeg will be authorized to work in activities like maintenance of wells and drilling rigs, transport, and the chemicals business. Suggesting that the new company will have a broad reach across the local natural resource industry.

Analysts surveyed by Bloomberg were split on the reasons for this extremely unusual move. With some suggesting that the new military vehicle could be a place to stash oil assets — with fields to be transferred out of state oil firm PDVSA, in case that firm goes into default and becomes exposed to creditors. Related: Why Today’s Oil Bust Pales In Comparison To The 80’s

Other observers believe the military firm is more geared toward the mining sector. Which the Venezuelan government has been pushing recently, as a way to diversify away from oil during the current period of low prices.

It was also suggested that the new company could simply be a way to reward key military supporters of President Nicolas Maduro. With Maduro looking for new ways to pay these pillars of his empire, as the economy of Venezuela stagnates.

Whatever the reason, this is a major red flag over the future of Venezuela’s resource sector. The military aren’t experts in oil or mining — and the move is likely to mean more bureaucracy, inefficiency, and squandered opportunities in Venezuela’s already-embattled industry. Related: OPEC-Russia Rumors Persist After Comments From Rosneft Chief

It could even signal the beginning of a steep downturn in productivity of existing assets. As the country sells off its future to prop up today’s strongmen. Watch for more announcements on specific projects taken up by Camimpeg.

Here’s to knowing what you’re good at

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Christian on February 15 2016 said:
    My guess is it's a way to keep the army loyal to Chavismo.
  • tony on February 15 2016 said:
    Bus driver running a country. Need I say more?
  • Gabriel on February 15 2016 said:
    thats what happens when politics and ideology takes over a whole countrys fate. Destroying everything in the name of a failing militarist project

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play