São Paulo [Brazil], January 7 (ANI): Indications that the United States could push for a revival of oil production in Venezuela, in line with plans outlined by President Donald Trump, are expected to alter the regional energy equation and pose fresh challenges for Brazil and its state-run oil major Petrobras. (Tribune India)
Venezuela, home to the world’s largest proven crude reserves, has seen its oil output plunge over the past decades, with production falling well below previous highs. If changes in US policy lead to a gradual recovery in Venezuelan output, competition for investment capital in the South American oil sector could intensify, analysts say. (Tribune India)
According to Brasil 247, the potential shift is increasing pressure on Petrobras to accelerate key strategic decisions, particularly related to exploration in Brazil’s Equatorial Margin, a frontier region seen as crucial for future growth. (Tribune India)
Alongside Venezuela, neighbouring Guyana and Suriname are advancing large offshore oil projects expected to significantly boost regional supply in the coming years. Some industry experts say the immediate impact on Petrobras could be limited, but medium- to long-term effects may be substantial as Venezuelan production expands. In response, Petrobras may need to strengthen its competitive position and focus more on strategic investments. (Tribune India)
The developments unfold against a backdrop of heightened volatility in global energy markets. Oil prices rose in recent trading amid concerns over supply risks following the US military operation in Venezuela last week, which reportedly resulted in the capture of ousted Venezuelan leader Nicolas Maduro and his wife, Cilia Flores, adding to regional instability and raising risk premiums in crude markets. (Tribune India)
Venezuela’s vast reserves are estimated at about 303 billion barrels, but Brazil’s Equatorial Margin is believed to hold around 30 billion barrels. Venezuelan crude is generally cheaper to extract because much of it lies onshore or in shallow waters, unlike the deep- and ultra‑deepwater fields of Brazil, Guyana, and Suriname. (Tribune India)
Industry watchers note that Brazil itself remains a major oil producer and exporter, with Petrobras responsible for a significant share of the country’s output. The company has been focusing on expanding production, including in offshore pre‑salt fields that have delivered substantial volumes in recent years. (en.mercopress.com)
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