Chevron, SLB signed Venezuela oil deals. Can smaller Houston firms do the same?

Full Post
Chevron and SLB have signed major Venezuela oil deals, but political uncertainty and financial risks are keeping smaller Houston firms on the sidelines.

As summer came to its unofficial end, the U.S. oil and gas industry watched ink dry on its first major deals struck with Venezuela.

Among those that have struck deals were historic independent wildcatter Hunt Oil; Houston’s largest oilfield services firm, SLB; the only U.S. company already producing in Venezuela, Chevron; and the U.S. government itself.

The contracts signed over the past few weeks appeared to be a big win for the Trump administration, which has touted Venezuela as the opportunity of a lifetime for the entire industry after the January overthrow of President Nicolás Maduro.

Industry experts say small and less-established independent companies have largely stayed away because they consider cutting deals in Venezuela still too risky.

The large, established companies that have secured contract work have the finances and political connections to pursue opportunities that largely hinge on the Trump administration’s push for Venezuelan crude — and to overlook the country’s billions in debts, crumbling infrastructure and political turbulence, experts say.

But even large industry players may be wary of the U.S. government’s deal with a Venezuelan company, industry experts say.

Many in Venezuela’s current government are “biting their tongues and grinding their teeth” over these deals signed, so far, with U.S. companies, but feel they have to accept them until the industry is rebuilt and they have the opportunity to retake power, said Mark Jones, a political science professor at Rice University who specializes in Latin American studies. Small U.S. companies would have a harder time withstanding that type of uncertainty, Jones said.

Read now
Chevron, SLB signed Venezuela oil deals. Can smaller Houston firms do the same?

Timeframe

Add to calendar

Location

No items found.

Sponsored

PEP Library

Explore Our Latest Insights

Visit page
Visit Library post
Analysts say the Iran war could drag on through November’s midterms as stalled peace talks and Tehran’s push for leverage prolong the conflict.
Visit page
Visit Library post
More tankers are moving through the Strait of Hormuz as shippers gain confidence, but the global supply of oil is still below demand.
Visit page
Visit Library post
An export ban likely would slow U.S. refining and eventually push up all fuel prices, including gasoline, jet fuel, and diesel.
Visit page
Visit Library post
Oil futures don’t tell the whole story. The Iran war is tightening crude supplies, widening the gap between benchmark prices and what buyers actually pay.
Visit page
Visit Library post
Pickering Energy Partners advised ConocoPhillips on the sale of non-operated Permian EOR assets in Gaines and Yoakum Counties, Texas.
Visit page
Visit Library post
Continental Resources plans to invest in Venezuela as Dan Pickering highlights the major funding needed to restore the country’s oil production.
Visit page
Visit Library post
Dan Pickering says Venezuela’s oil revival needs major foreign investment, but concerns over contract protections and past nationalizations persist.
Visit page
Visit Library post
Diesel prices are surging as wars in Iran and Ukraine disrupt fuel supplies. Analysts explain why the Iran war is the bigger driver of rising costs.
Visit page
Visit Library post
Trump officials say the oil-market disruption is temporary, but Chevron’s Mike Wirth and others warn global supplies are running low, with no respite in sight
Visit page
Visit Library post
California diesel prices average $7.91 a gallon, with several stations charging over $9 and some pump displays hitting their $9.999 limit, GasBuddy reports.
Visit page
Visit Library post
Analysts warn the escalating Iran war could deepen global fuel shortages, push diesel prices higher and intensify inflation as energy supplies dwindle.
Visit page
Visit Library post
Dan Pickering expects the Iran conflict to outlast U.S. midterms, keeping oil prices elevated amid China’s return and risks to Saudi oil supplies.
Visit page
Visit Library post
Relentlessly rising fuel costs are feeding inflation and threatening Republican reelection chances.
Visit page
Visit Library post
Chevron and SLB have signed major Venezuela oil deals, but political uncertainty and financial risks are keeping smaller Houston firms on the sidelines.
Visit page
Visit Library post
The oil outlook has shifted from potential surplus to sustained tightness—and Dan Pickering does not expect a quick return to the market that existed before the fighting in Iran began earlier this year.
Ready to get started?
Contact our specialized teams at PEP for more information.