Page 7 - NorthAmOil Week 48 2022

NorthAmOil COMMENTARY NorthAmOil

Second take: Reading the fine print fourth-largest gas reserves,” he declared. “They
This optimistic tone did not last. Somewhere cannot take us out, sooner or later we will be an
along the line, officials in Caracas must have oil and petrochemical power.”
noticed that GL 41 did not just wave Chevron He added: “Our oil is not an ideological-po-
ahead, giving it carte blanche to proceed with litical issue. It is a free resource. We produce it
business as usual; rather, it placed certain limits and sell it to those who need it, not to those who
on the US major’s ability to operate in Venezuela. think like us – yes, at fair prices based on con-
For example, the statement says explicitly tracts that respect our legislation.”
that Chevron’s re-entry cannot result in PdVSA
receiving any profit as a result of sales of Ven- Chevron’s take: Caution
ezuelan oil. It continues: “GL 41 authorises In the meantime, Chevron is saying that it has
activity related to Chevron’s joint ventures in limited expectations for its initial return to Ven-
Venezuela only and does not authorise other ezuela – which could, after all, be last for as little
activity with PdVSA. Other Venezuela-related as six months, as that is the term of GL 41.
sanctions and restrictions imposed by the [US] Technically, the timespan involved could be
remain in place; the [US] will vigorously enforce even shorter, as it could be terminated any time.
these sanctions and will continue to hold But even if the US major remains active in the
accountable any actor that engages in corrup- South American state for the entire six months,
tion, violates US laws or abuses human rights it remains to be seen how much it accomplishes.
in Venezuela.” Michael Wirth, the CEO of Chevron, said at the
Those provisions of the document appear Economic Club of New York earlier this week
to have roused Maduro’s ire. On December 1, that he did not expect his company to accom-
the Venezuelan president was quoted in a press plish much in the way of new drilling this year.
release as saying that while he appreciated the “We’re not likely to be coming in with invest-
partial lifting of trade restrictions, the US was ment in a drilling campaign that grows produc-
overstepping its bounds by seeking to constrain tion in the next six months,” he commented.
PdVSA’s finances. “There’s a lot of work that has to be done ... to Wirth’s caution
“They are going in the right direction, but they allow us to move in that direction.”
are not enough for what Venezuela demands, Wirth’s caution probably does not stem from probably does
which is the complete lifting of all sanctions and concern about criticism, even though the deal not stem from
measures on the national oil industry,” Maduro has drawn some opposition in the US, with
was quoted as saying in a company press release. members of the Republican Party faulting concern about
“Venezuela has the right to economic and pro- Biden for being willing to work with Maduro’s
duction freedom. An attempt is being made to administration. Instead, it is more a product criticism, even
mount a neocolonial model on us, where a for- of caution – and the understanding that it will
eign country executes sanctions and tells the rest take time to bring Venezuela’s long-neglected though the deal
of the world that another country cannot sell or and inadequately repaired production, pro- has drawn some
produce oil.” cessing and transportation infrastructure back
The Venezuelan president also asserted his into action. opposition in the
country’s right to do as it pleased with its own Nevertheless, the Chevron head is right
resources. Washington does not have the right to be cautious. Maduro’s frustration with US.
to try to keep Caracas from taking its place at the US efforts to keep profit out of the hands of
table among other global oil producers, he said. PdVSA could lead to squabbling over GL 41.
“Taking the company away from us and tak- If it does, the US super-major will be sure to
ing Venezuela out of the world’s energy circuit bear the consequences of that squabbling –
was a terrible, extremist idea of Donald Trump, and it will end up needing even more time
and they are paying for it, because Venezuela to carry out repair and maintenance work in
has the largest reserve in the world and the Venezuela before it can start production.™

Week 48 01•December•2022 www. NEWSBASE .com P7