Arab Today, arab today experts see no sea change in oil policy
Last Updated : GMT 06:37:29
Arab Today, arab today
Arab Today, arab today

Experts see no sea change in oil policy

Arab Today, arab today

Arab Today, arab today Experts see no sea change in oil policy

London - AFP

Venezuela\'s vast nationalised oil sector needs to open up to foreign investors if it is to develop but there is little likelihood of a rapid change following the death of president Hugo Chavez, analysts say. Chavez used oil as a political and propaganda tool and his passing has focused attention on what will happen next to the largest proven crude oil reserves in the world. Oil prices slid on Wednesday, having earlier rebounded on uncertainty following Chavez\'s death. The market then accelerated losses after signs of weak demand in the United States, the world\'s leading oil consumer. \"President Chavez going out of the picture is a big game-changer,\" Diego Moya-Ocampos, analyst at IHS Global Insight, told AFP. \"He leaves a power vacuum (in Venezuela) which will be very, very hard to fill.\" Moya-Ocampos believed that if Chavez\'s chosen successor Nicolas Maduro won elections that could be held within a month, little would change in the short term. \"If Maduro is elected, we could expect some policy continuity, and the same sort of nationalist approach.\" Analysts at JBC Energy agreed: \"We do not expect large changes to Venezuela\'s oil policies and see only a minor chance for greater openness towards foreign investors, especially as current arbitration cases against IOCs (International Oil Companies) are still ongoing.\" The US giant ConocoPhillips is one of the companies in dispute with Venezuela. Chavez\'s rise was closely linked to oil. He nationalised some assets owned by international oil companies and put the state company PDVSA in control of all oil and gas projects. Following his election in 1998, Chavez profited from the dizzying rise in crude prices which increased tenfold in a decade, investing billions of dollars of the profits into \'social inclusion\' projects for the poor. Chavez also used the oil to keep his allies close. Venezuela supplied 100,000 barrels of crude a day at preferential rates in exchange for medical personnel. Chavez also sent Nicaragua 10 million barrels of oil a year and Uruguay received between six and eight billion barrels a year. But it is China that could suffer most from any breakdown in the special relationship it cultivated with Chavez\'s regime. China has agreed to lend Venezuela around $50 billion through the Chinese Development Bank in return for shipments of crude oil. \"Beijing will be worried about the future of this strategic investment,\" said Jean-Francois Dufour, an analyst at the French company DCA Chine-Analyse. David Rees, of Capital Economics, said: \"The uncertain political outlook could discourage future petro-loans from China.\" With oil revenues providing 90 percent of Venezuela\'s foreign earnings, Chavez\'s likely successor Maduro will probably have to increase oil output to maintain the social inclusion policy, Moya-Ocampos said. And that, he believes, could see international oil companies being allowed to play a bigger role. \"It will lead to a situation where... particularly in the oil-rich Orinoco Belt, we can expect some flexibility. \"Because at the moment, what we\'re seeing is that most of the companies are in wait-and-see\" mode until it is clear who will lead the country. Production decreased 25 percent under Chavez\'s rule and the sorely-needed influx of foreign investment to increase output will not come overnight. \"It took Mr Chavez ten years to run the oil industry down and it might take just as long to get it back again,\" Rees said. Whatever happens, Venezuela will remain a major player in the oil market. According to BP economists, it has the largest proven reserves of crude in the world, with 296 billion barrels, compared with 265 billion barrels for Saudi Arabia. Despite Chavez\'s hostile relationship with US politicians, Venezuela exported 36 percent of its oil production to the United States in 2012.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today experts see no sea change in oil policy Arab Today, arab today experts see no sea change in oil policy

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today experts see no sea change in oil policy Arab Today, arab today experts see no sea change in oil policy

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday