ConocoPhillips CEO sends strong message on Venezuela oil future

Core Insights - ConocoPhillips' cautious stance on Venezuela's oil production reflects broader challenges in the energy sector, particularly due to OPEC's increased output and declining crude prices [1][2] Group 1: Venezuela's Oil Potential - Venezuela possesses the world's largest oil reserves, totaling 303 billion barrels, yet decades of instability and failed promises have made energy companies hesitant to invest [2] - Venezuela's peak oil production reached 3.75 million barrels per day, but projections indicate it will only reach about 800,000 barrels per day by 2025, a significant increase from a low of 350,000 barrels per day in 2020 [2] Group 2: ConocoPhillips' Position - ConocoPhillips CEO Ryan Lance emphasized a focus on recovering investments in Citgo rather than rapidly ramping up production in Venezuela, indicating a cautious approach [3] - The company is owed over $10 billion by Venezuela due to nationalization and asset seizures, following a 2019 International Arbitration Tribunal ruling [3][6] Group 3: Historical Context and Projects - ConocoPhillips' projects in Venezuela include Petrozuata, which had an investment of over $2.4 billion and an estimated production of 120,000 barrels per day, and Hamaca, with costs totaling $3.8 billion and an estimated production of 190,000 barrels per day [8] - The Corocoro project, discovered in 1999, is estimated to contain 500 million barrels of oil reserves, with ConocoPhillips holding a 32.5% interest [8]