Dr. Carole Nakhle, CEO of Crystol Energy, was featured in L’Orient Le Jour in an article exploring whether Venezuela’s oil could become a geopolitical lever against Gulf producers.
She noted that the near term risk to the Gulf is limited, because Venezuela’s oil sector is so degraded that production cannot rebound quickly even if US sanctions ease or domestic politics shift, and any recovery would take time after years of under investment, deteriorating infrastructure, and loss of human capital.
Oil production share in OPEC
Looking further ahead, she suggested Venezuela may seek maximum flexibility to attract foreign investment and lift output, including the possibility of leaving OPEC, and that any gradual return of barrels would add to global supply and, all else equal, put downward pressure on prices, while Gulf producers retain an advantage through lower lifting costs and the ability to adjust production relatively quickly to support market stability.
Related Analysis
“Kazakhstan and the EU: Common interest in energy security’“, Dr Carole Nakhle, Jun 2023
