Energy secretary warns against legitimacy of Chinese deals
Chris Wright, the U.S. secretary of energy, urged on Wednesday that the U.S. invest more in Venezuela during the most high-level visit to the U.S. focused on energy policies in almost three decades. Wright also warned about the legitimacy of Chinese companies in the OPEC nation.
Wright stated that the U.S. After a meeting with the Interim President, Delcy Rodriquez, at the Miraflores Presidential Palace in Caracas, the U.S. Wright stated in a televised press conference that "this year we can drive an increase in Venezuelan gas, oil, and electricity production." Venezuela produces about 1 million barrels of crude oil per day.
Wright told reporters at a roundtable after meeting Rodriguez that legitimate deals by legitimate Chinese companies are fine in Venezuela, but the U.S. President Donald Trump's administration is trying to avoid "damaging" deals like those which have done so to other countries in the region. Wright told reporters in a roundtable following his meeting with Rodriguez that legitimate Chinese deals are fine for Venezuela. However, the U.S. administration of President Donald Trump is avoiding "damaging deals" that have caused problems in other countries in the region.
He said that China makes a lot deals with countries in which they do not benefit both parties. They have caused a lot of damage to countries in South America, Africa, and all over the world. "We want to stop these deals with U.S. assistance and U.S. partnership."
He said that China had already purchased some of the crude oil offered by the United States.
Wright said that the lifting of all sanctions against Venezuela is not a deadline, and debt restructuring agreements are needed to compensate companies for expropriations in Venezuela from years ago, but these will not be done "overnight."
Venezuela owes billions to oil, mining and industrial conglomerates after massive nationalizations 20 years ago.
The secretary said that after the government approved an oil reform last month, the risk for energy companies to invest in the country has been reduced. He said that the changes may not be enough to attract large capital flows, but they are a positive step. The U.S. released a general license on Tuesday to facilitate exploration and production of oil in Venezuela. The authorization comes after?previous licences that allowed oil exports and fuels imports.
Analysts viewed the licenses as an 'America First Relief' because they provided clarity to U.S. firms while maintaining the old standard of case by case review for non U.S. entities. The relief from sanctions on oil sales and exports excludes companies and individuals that are affiliated with rivals such as China, Iran, and Russia.
This week, Russia criticized U.S. policy and called it a discriminatory one.
BUSY AGENDA Wright, Rodriguez, and their team face a Herculean challenge to organize the recovery of Venezuela’s oil industry following decades of mismanagement, underinvestment and U.S. sanction, all while placing U.S. Investors at the forefront of the line.
Wright's visit follows the capture by U.S. troops of Venezuelan President Nicolas Maduro in early January. A $2 billion oil deal was signed by the U.S. shortly thereafter, as well as a $100 billion plan by Trump to rebuild the energy industry.
Wright stated that elections in Venezuela were not discussed Wednesday. Rodriguez had said that she hoped earlier in the day the relationship between Caracas, Washington and the United States would continue to progress "without any obstacles." The U.S. Embassy in Caracas reopened in late January and said Wright's trip would be crucial to Trump's Venezuela vision.
In a blog post, Charge d'Affaires Laura Dogu stated that "the U.S. Private Sector will be crucial to boost the Oil sector, modernize Venezuela's electric grid, unlock Venezuela's immense potential." She attended the meeting at Miraflores as well.
Bill Richardson was the last U.S. Energy Secretary to visit Venezuela. He made several trips between 1998 and 2001, under former President Bill Clinton. Since then, high-ranking U.S. government officials have rarely visited Caracas as their bilateral relationship with former president Hugo Chavez or Maduro has been strained.
Wright is also scheduled to meet with executives from companies such as Chevron, Spain's Repsol and other major oil companies this week. Sources familiar with preparations say that he is expected to remain in Venezuela until Friday, meeting with local consumer goods companies, before heading to Petropiar - the largest oil project Chevron, and the state energy company PDVSA, operate - located in Venezuela's Orinoco Belt region.
POLITICAL CHALLENGES Wright's visit, which took place despite Venezuela's volatile political context, reflects an ongoing U.S. interest in Venezuelan crude oil, as Washington tries to reshape the global energy market while pressing Russia, says Thomas O'Donnell.
He said that the Trump administration is now pursuing "a doctrine of American energy dominance", which could give the U.S.?the ability to take Russian oil off-line if necessary.
Wright stated on Wednesday that Washington is still working on a license to allow Venezuelan companies to purchase products, invest in oil production, create jobs, and increase export revenues. Trump's agenda is centered on commerce, trade and peace, "not conflict or military action," Wright said. After a classified briefing from Wright, Senator John Hickenlooper of Colorado, a Democrat, said to reporters that the "entire thing" was like performing an impossible high dive or a difficult freestyle ski flip maneuver. We can only hope it works. Reporting by Marianna Pararaga, Nathan Crooks and Sheila Dang; editing by Chris Reese and Mark Porter.
(source: Reuters)
