The US is negotiating with Chevron, other crude oil producers as well as the world's largest oilfield service providers on a plan to quickly restore oil production in Venezuela at a cost of only a small part compared to the estimated 100 billion USD needed for complete reconstruction.
Oilfield contractors such as SLB, Baker Hughes and Halliburton will focus initial efforts on repairing or replacing broken or outdated equipment and upgrading old rigs, many unnamed sources said.
According to this orientation, with limited investment, Venezuela can increase production by several hundred thousand barrels in the short term.
This rapid approach is designed to meet President Donald Trump's administration's goal of rapidly increasing crude oil after the US arrested Venezuelan President Nicolas Maduro, creating cash that could be used to help pay for the reconstruction of the country.
In the long term, President Donald Trump's goal is still to revive the oil and gas industry, bringing Venezuela's oil production from the current output of less than 1 million barrels/day closer to the 1970 peak of about 3.75 million barrels/day.
A representative of Halliburton said that the company's goal in Venezuela is "to achieve rapid results and create immediate production recovery".
Oil exports from Venezuela are increasing rapidly in line with some of President Donald Trump's priorities. Increasing supply from Venezuela, although modest, is seen as not only helping to curb crude oil and gasoline prices, but also helping to expand the scope of US operations in the Iran issue without shocking the market.
The sale of Venezuelan crude oil will bring profits to both the US and Venezuela while "reducing oil prices further," Mr. Trump said on Air Force One aircraft on January 22.
Bringing modern US equipment and technology to Venezuela could revive existing oil wells and put new facilities into operation within months, according to US officials.
If the administration of President Donald Trump gives the green light for other US contractors to join SLB, the largest service company still operating in Venezuela, in the early stages, the parties may use proven equipment to restore old wells, repair artificial lift pumps and install electric turbines at remote oil fields.
In the short term, it is to maintain the oil wells of PDVSA ( Venezuelan state-owned oil and gas company). Technically, this is not difficult, does not require a huge amount of capital," said David Goldwyn, chairman of Energy Advisory Group.
In the long term, US officials and oil companies are negotiating with the government about infiltrating Venezuela, seeing opportunities in drilling new wells and even exploiting new underground oil fields.
US Treasury officials are considering a large number of licensing applications from crude oil producers, oil service companies and other companies wanting to be licensed to enter Venezuela.
