By Matthew Smith
● Venezuela’s vast oil reserves are
estimated to exceed 300 billion
barrels
● While there is considerable
opposition to Biden removing
sanctions on Venezuela, recent
developments point to a recali-
bration being urgently required
● Any attempts by the Biden
administration to reconsider
sanctions to allow foreign energy
companies to drill in Venezuela
may not garner the outcomes
desired
The severe energy crisis which emerged after Russian President Vladimir Putin’s decision to invade Ukraine is causing energy prices to soar. This couldn’t have come at a worse time for a global economy that is struggling to recover from a devastating pandemic and is now confronted by the threat of surging inflation. A marked decrease in hydrocarbon supplies caused the international Brent oil price to surge by 42% since the start of 2022 to be selling for over $93 per barrel, while natural gas has gained a whopping 39% be $5.20 per million British thermal units (MMBtu). Acute global supply constraints resulting in higher prices and the headwinds posed by spiralling inflation are threatening the post-pandemic global economic recovery. As a result, many countries, notably the U.S and those in Western Europe, are urgently seeking additional oil and natural gas supplies. This sees them eyeing Venezuela – once Latin America’s largest oil producer – as a potential major source of supply.