• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 5 hours Oil prices going Up? NO!
  • 15 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 14 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 19 hours Oil prices going down
  • 1 hour Saudi Arabia turns to solar
  • 22 hours Could oil demand collapse rapidly? Yup, sure could.
  • 2 days Oil Buyers Club
  • 2 days Gazprom Exports to EU Hit Record
  • 6 hours Are Electric Vehicles Really Better For The Environment?
  • 13 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 6 hours Kenya Eyes 200+ Oil Wells
  • 21 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 days Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 2 days Could Venezuela become a net oil importer?
  • 21 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 12 hours OPEC soap opera daily update
OPEC’s Agreement Sends Oil Prices Soaring

OPEC’s Agreement Sends Oil Prices Soaring

Oil prices spiked on Friday…

Oil Markets Turn Bearish Ahead Of OPEC Meeting

Oil Markets Turn Bearish Ahead Of OPEC Meeting

Oil prices fell on Tuesday…

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