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

The Canadian oil tycoon, who is the head of one of North America's fastest growing oil companies, wants his country to "lend" its heavy oil expertise to America as it tries to rebuild Venezuela's petroleum industry.

Adam Waterous is the executive chairman of Strathcona Resource. He said that Canada's experience in extracting oil from sands crude makes it uniquely qualified to help Venezuela, which also produces heavy oil.

Waterous said 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 TEAMS President Donald Trump invited U.S. oil executives to the White House last week to discuss Venezuela. No Canadian companies were present.

Waterous, who attended Harvard University and is connected to the United States through Henry Hager, son-in law of former President George W. Bush. He also serves as Strathcona’s managing director.

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 rebuild Venezuela's energy industry at a time of tension between the US and Canada due to Trump's trade policies.

This year, the Canada-United States Mexico Agreement is being reviewed jointly. Some investors believe that an increase in Venezuelan oil exports to the United States may weaken Canada's position.

Waterous stated that the U.S. purchasing Venezuelan crude on a long-term basis increases the need for Canada to diversify their markets and build a second pipeline to the Pacific.

Canada exports 90% of its crude oil to the U.S. but analysts say that a significant increase in Venezuelan production would compete with Canadian barrels refined along 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)