• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 2 hours WTI @ 67.50, charts show $62.50 next
  • 7 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 8 hours Mike Shellman's musings on "Cartoon of the Week"
  • 3 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 13 hours Venezuela set to raise gasoline prices to international levels.
  • 3 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 7 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 13 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 20 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 19 hours Corporations Are Buying More Renewables Than Ever
  • 8 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 24 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 9 hours France Will Close All Coal Fired Power Stations By 2021
Trade War Fears Could Keep WTI Under $70

Trade War Fears Could Keep WTI Under $70

Trade war fears caused a…

What Happens To Syrian Oil Post-Civil War?

What Happens To Syrian Oil Post-Civil War?

After years of conflict in…

Venezuela Sees Foreign Investment in Oil Fall in Political Vacuum Left by Chavez

Due to the political vacuum left by Hugo Chavez’s absence whilst he battles cancer behind closed doors, Venezuela’s oil industry has experienced the first decline in foreign investment in five years.

No new credit lines have been announced from China, the largest foreign contributor to Venezuela’s oil industry, since April last year, and both Russian and Indian companies are withholding their planned investments until the political situation becomes more stable and transparent.

This lack of investment from foreign governments is contrasted by the private sector where investors are eager to buy into Venezuelan assets, believing that Chavez’s successor will reduce the state’s grip on the economy.

Matt Ferchen, a scholar at the Carnegie Tsinghua Centre for Global Policy, explained that “there There is simply nowhere in the world, outside of China, where the CDB has built up such a huge financial presence. Even if Chavez wasn’t the easiest partner for China, he was their man, and now they don’t know who is in charge.”

Related Article: What to Expect from a Post-Chavez Venezuela

Vice President Nicholas Maduro is currently running the country, but Chavez’s political opposition have called for Maduro to stand down temporarily and cede power to their party whilst Chavez is ill, in order to increase the political stability in the country and give investors some assurance.

Current delays to the funding threaten the ability of one of the most oil rich countries in the world to reverse its declining output. Oil production in Venezuela has fallen 13 percent since Chavez first took power in 1999 to just 2.7 million barrels a day.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News