Venezuela's Oil Opportunity Comes with Major Hurdles, Says Former Chevron Exec

A former Chevron executive believes that an ownership stake in Venezuelan oil fields could be beneficial for the U.S. due to energy security concerns. Ali Moshiri, CEO of Amos Global Energy and former President of Chevron Africa and Latin America, thinks that Venezuelan oil can reach U.S. refiners without passing through shipping corridors such as the Strait of Hormuz.

Venezuela holds the world's largest proven oil reserves, but producing its heavy and extra-heavy crude is a complex task requiring specialized technology and experience. Moshiri estimates that it will take time to rebuild local operational capacity and skilled labor, which has been eroded by Venezuela's absence from global energy markets for 15 years.

Smaller operators may be more likely to move into the Venezuelan oil market quickly due to their agility in committing crews and capital. In contrast, large integrated producers like Chevron may move cautiously due to compliance protocols and memories of prior capital losses in Venezuela.