Venezuela Oil Deals Bring Texas Firms In, But Risks Linger

After the overthrow of Venezuelan President Nicolás Maduro in January, Texas companies have signed major oil deals with Venezuela. Chevron and SLB, both based in Houston, were among those that secured contracts valued at billions of dollars. The U.S. government also signed a deal giving it a 35% equity stake in North American Blue Energy Partners, which has rights to 17 oil fields.

The agreements are seen as a win for the Trump administration, but industry experts warn that smaller companies may be deterred by the risks involved. The Venezuelan regime is still reeling from its recent losses and may not have the capacity to follow through on deals.

However, some in the industry believe that these deals could help stabilize the market and create opportunities for American companies. Chevron's $7 billion agreement would see it increase production in Venezuela to 600,000 barrels per day over the next five years, accounting for more than half of the country's current output.

While there are still many uncertainties surrounding the industry, some experts believe that these deals could be a turning point. 'The U.S. owns a piece of this, the U.S. is governing this company, or involved influencing the governance of the companies, so come on in, the water's fine,' said Dan Pickering, head of Pickering Energy Partners in Houston.