• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 1 hour Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 25 mins Renewables provided only about 4% of total global energy needs in 2018
  • 3 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 2 days Iran Captures British Tanker sailing through Straits of Hormuz
  • 1 day EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 13 hours Shale Oil will it self destruct?
  • 1 hour Today in Energy
  • 3 days Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 2 days Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 9 hours So You Think We’re Reducing Fossil Fuel? — Think Again
  • 3 hours N.Y. Governor Signs Climate Bill
  • 2 hours First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 3 days LA Solar Power/Storage Contract
  • 19 hours U.S. Administration Moves To End Asylum Protections For Central Americans
EV Giants Vie For Battery Dominance

EV Giants Vie For Battery Dominance

EV makers are pouring billions…

Why Crude Quality Matters

Why Crude Quality Matters

There are three issues currently…

BP CEO Sees Venezuela As Oil’s Wildcard

BP

Venezuela—not the Middle East—is the wild card when it comes to the near future of the oil industry, BP’s chief executive Bob Dudley told CNBC on the sidelines of the Abu Dhabi Petroleum Exhibition & Conference.

"I think Venezuela is just defying economic gravity and I think that's a real wild card," Dudley said, referring to the combination of falling oil production, severe recession, political instability, and sanctions that the South American nation has endured in the last four years.

Venezuela has the largest crude oil reserves in the world, according to BP estimates, but it has found it increasingly difficult to exploit these, especially amid falling international prices and resource mismanagement by state-owned PDVSA.

Added to this is growing international concern that the government of Nicolas Maduro is stifling democracy in a brutal manner, which most recently led to the European Union this week slamming Caracas with a ban on the sale of arms to Venezuela.

The EU’s Council of Foreign Ministers also warned it was considering the imposition of sanctions against certain individuals but was unwilling to rock the boat at this particular moment. Venezuela has just begun the process of restructuring a debt pile of US$60 billion and the EU is cautious about not tipping the crisis-stricken country further into the pits of chaos.

BP used to be active in Venezuela until 2013, through its stake in Anglo-Russian TNK-BP’s crude upgrader in the Orinoco belt, where Venezuela’s reserves are concentrated. In 2013, however, BP sold out its TNK-BP sale to partner Rosneft.

Related: Venezuela’s Oil Rival Calls For Full U.S. Sanctions

Dudley’s opinion that the Venezuelan situation could have more serious implications—whose nature is unclear—for the oil industry than the latest escalation in the Middle East does rest on logic; more specifically, on the logic that a familiar evil is a lesser evil.

Middle Eastern powers have been fighting in various ways for decades. The global oil market has gotten used to viewing the region as a powder keg, while the problem with Venezuela is a new one by comparison, and a more unpredictable one.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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