Venezuela's Oil Opportunity Comes With a Major Catch

A former Chevron executive believes that Venezuela's oil reserves could provide energy security for the United States without passing through conflict-prone waterways.

Venezuela holds the world's largest proven oil reserves, and unlike Gulf barrels, they can reach U.S. refiners without transiting maritime corridors like the Strait of Hormuz.

The real obstacle to extracting Venezuelan oil is its operational complexity, says Ali Moshiri, CEO of Amos Global Energy and former President of Chevron Africa and Latin America.

Venezuelan crude is heavy and extra-heavy, requiring specialized technology and experience. Smaller operators may be better positioned to exploit this opportunity than large integrated producers due to compliance protocols and memories of prior capital losses in Venezuela.