Canadian oil tycoon suggests US aid in Venezuela's oil revolution

The Canadian tycoon, who is the executive chair of one of North America’s fastest-growing oil companies, wants his country to lend their heavy oil 'expertise' to the United States in order to help rebuild Venezuela's industry. Adam Waterous, executive chair of Strathcona, says Canada is uniquely qualified to help Venezuela because of its decades of experience in extracting heavy oil from oil sands.

Waterous stated in an interview that "we are better placed than any other country to rebuild." "I'd expect, but don't really know, that a request for assistance would be welcomed."

STRATHCONA IS WILLING TO SEND A TECHNICAL TEAM Last week, President Donald Trump invited U.S. Oil executives to the White House for a discussion on Venezuela. The event was not attended by any Canadian companies.

Waterous, who studied at Harvard University and has U.S. connections through Henry Hager (son-in-law of former President George W. Bush), who is Strathcona’s managing director, said that he would quickly put together a team from his firm to travel to Venezuela if he were asked.

He said, "I am sure that there is no heavy oil company in Canada who would refuse to do so."

Waterous stated that Strathcona is Canada's 5th largest oil producer and does not intend to invest in Venezuela. Waterous said that Canada could help the United States by helping rebuild Venezuela's energy industry, at a time when Trump’s trade policies have strained relations between both countries. Canada's exports have been protected from the?U.S. by the Canada-United States Mexico Agreement. The tariffs are up for review in this year's joint review. Some investors believe that an increase in Venezuelan oil flows to the United States may weaken Canada’s leverage.

Waterous stated that the U.S. purchasing Venezuelan crude in the long term increases the need for Canada to diversify their markets and build a pipeline to the Pacific. Analysts have said that a significant increase of Venezuelan heavy oil production would directly compete with Canadian barrels on the U.S. Gulf Coast. Last week, the discount between heavy Canadian crude and U.S. oil increased by 14%. Meanwhile, shares of Strathcona as well as other Canadian heavy oil producers dropped on investor concerns about a possible revival of Venezuela's petroleum sector. (Reporting and editing by Rod Nickel in Calgary)

(source: Reuters)