Venezuelan heavy oil was developed by US companies nearly 30 years ago. Those projects were nationalized and a lot of the PDVSA workforce went to work on similar projects in Canada. Guyana is next door to Venezuela and as you know Exxon's just getting started there.
Thoughtful as well as insightful comments…keep it up…please keep shedding all spectrums of light on this subject…hopefully the messages will all be analyzed and valued as our freedoms to speak and to think are restored!!❤️
Product pricing and capital availability will be the rate-determining factors in this episode of "drill baby, drill". Significantly higher interest rates and far less availability of debt, combined with capital discipline and discerning equity markets will effectively mute any material domestic oil production expansion. As a country we are already red-lined as to production volumes, at least with current technology.
The domestic O&G industry works in two modes, when prices are high produce everything it can. Lower prices will focus on value propositions, and as you say, the number of tier 1 opportunities are becoming more and more limited.
Prices were low during the first Trump administration and the industry was in meltdown. Prices rebounded post COVID and production is at all time highs.
With the president pushing OPEC to produce more to drive prices down, what's the investment opportunity for domestic producers? I certainly wouldn't take the risk now. The return won't be worth it.
Domestic oil production should get more budget allocation to interventions to improve volumes. The challenge is these activities are funded out of opex and compete with staff talent and tine for capex.
Venezuelan heavy oil was developed by US companies nearly 30 years ago. Those projects were nationalized and a lot of the PDVSA workforce went to work on similar projects in Canada. Guyana is next door to Venezuela and as you know Exxon's just getting started there.
Thoughtful as well as insightful comments…keep it up…please keep shedding all spectrums of light on this subject…hopefully the messages will all be analyzed and valued as our freedoms to speak and to think are restored!!❤️
Product pricing and capital availability will be the rate-determining factors in this episode of "drill baby, drill". Significantly higher interest rates and far less availability of debt, combined with capital discipline and discerning equity markets will effectively mute any material domestic oil production expansion. As a country we are already red-lined as to production volumes, at least with current technology.
The domestic O&G industry works in two modes, when prices are high produce everything it can. Lower prices will focus on value propositions, and as you say, the number of tier 1 opportunities are becoming more and more limited.
Prices were low during the first Trump administration and the industry was in meltdown. Prices rebounded post COVID and production is at all time highs.
With the president pushing OPEC to produce more to drive prices down, what's the investment opportunity for domestic producers? I certainly wouldn't take the risk now. The return won't be worth it.
The focus should be Build, Baby, Build. Natural gas used for electricity production.
Domestic oil production should get more budget allocation to interventions to improve volumes. The challenge is these activities are funded out of opex and compete with staff talent and tine for capex.