Page 9 - LatAmOil Week 41 2022
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LatAmOil                                      VENEZUEL A                                           LatAmOil



                         Sources familiar with the matter told the Wall   However, Adrienne Watson, a spokeswoman
                         Street Journal last week that the administra-  for the National Security Council (NSC), cau-
                         tion of US President Joe Biden was gearing up   tioned that “constructive steps from the Maduro
                         to soften the sanctions regime, which includes   regime” would be required for the US to con-
                         provisions designed to discourage investment in   sider softening the sanctions.
                         Venezuela’s petroleum sector.          Venezuela has a long history of being a
                           This shift would be conditional on agreement   major oil producer. In the 1990s, it saw output
                         by the government of Venezuelan President   top 3.2mn barrels per day (bpd). However, pro-
                         Nicolás Maduro to re-enter suspended talks on   duction levels have plummeted since then. The
                         the holding of free and fair national elections in   decline is partly due to corruption, mismanage-
                         2024, they said.                     ment, under-investment and the misallocation
                           If Maduro’s regime accepts those terms, the   of funds. However, conditions have worsened
                         sources noted, it would be able to access millions   since early 2019, when the US government
                         of dollars of Venezuelan state funds deposited in   imposed trade restrictions that led most interna-
                         US banks, per the terms of another agreement   tional oil companies (IOCs) to withdraw from
                         struck with the US and some members of Ven-  the country and stop importing Venezuela’s
                         ezuela’s political opposition. Under that agree-  heavy crude.
                         ment, Caracas is supposed to use these funds to   Any easing of sanctions by the US would
                         pay for imports of food and medicines, along   boost the world oil market’s confidence in
                         with crucial equipment to support the operation   Venezuela as a supply option. This notion may
                         of Venezuela’s ageing power transmission grid   have become more attractive to Washington in
                         and municipal water systems.         the wake of the recent decision by the OPEC+
                           According to the Wall Street Journal, US   group to reduce production quotas by 2mn bpd
                         officials did confirm last week that the details   in response to declining oil prices. Biden has
                         of such a policy shift were under discussion.   protested against this move. ™




                                                        GUYANA
       Canadian official backs Guyana’s plans to




       develop both oil and renewable energy






                         MARK Berman, the Canadian High Commis-
                         sioner to Guyana, said at the Guyana Basins
                         Summit (GBS) last week that he did not see the
                         country’s plans to develop its oil industry as well
                         as its renewable energy sector as contradictory.
                           Berman stressed that Guyana was taking
                         steps to ensure that exploration and develop-
                         ment projects in its offshore zone were less car-
                         bon-intensive petroleum than those carried out
                         by other states. He also pointed out that since oil
                         export revenues could be invested into efforts to
                         expand the use of renewable energy, the petro-
                         leum sector could indeed serve as a vehicle for
                         the green energy transition.
                           “There is a very sound argument and I have
                         heard the leaders of Guyana ask: ‘Why not Guy-
                         ana?’ I think that if you look at the LCDS [Low
                         Carbon Development Strategy], you can see that      Berman (second from left on stage), shown speaking  during
                         there is a plan to do that. You are already seeing   GBS panel discussion event (Images: Twitter/@CanAmbGuyana)
                         the large solar farms that are going to be set up,”
                         Berman during a panel discussion.      The summit aims to facilitate discussions on
                           He went on to note that Guyana was seeking   Guyana’s social, economic and environmental
                         to encourage the use of other energy sources   needs and connect international energy oper-
                         as well as fossil fuels. So long as the necessary   ators, technology experts, licence holders and
                         resources are devoted to the development of   infrastructure developers in an effort to identify
                         renewable energy solutions, there will be no   the best methods for conducting business with
                         clash in agendas, he asserted.       new partners.



       Week 41   12•October•2022                www. NEWSBASE .com                                              P9
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