Venezuela Oil Deal Faces Steep Operational Hurdles, Experts Warn

Former Chevron executive Ali Moshiri has cast doubt on the success of the White House's newly announced oil agreement with Venezuela. The deal, touted as 'THE BIGGEST OIL DEAL IN THE HISTORY OF THE WORLD', grants exploitation rights to 17 oil fields for the next 100 years and is expected to attract $100 billion in investment.

Moshiri, who spent decades managing Latin American operations for Chevron, warns that restarting Venezuela's dilapidated heavy-crude industry will take years and specialized expertise. He notes that the country's reserves are overwhelmingly heavy and extra-heavy, requiring significant infrastructure upgrades.

The agreement has sparked concerns about Canadian crude exports to the US Gulf Coast market, which could be eroded by a sustained increase in Venezuelan supply. Oil experts say that deploying the capital required to restore production will unfold over several years, not months.