Venezuelan reserves are, most likely, over estimated. The complication arises in political necessity. Look at the history of claimed reserves. There was a sudden bump that is rather suspect. In addition, of what is known, those new finds are even heavier and deeper down than the absolutely proven, which are only around 100 Billion Barrels
Further complicating the estimation is the relative economic feasibility of refining the bulk of Venezuelan oil. It ain't called sour for nothing. It takes more resources and is more complex to distill compared to West Texas Intermediate. You also wind up with lower yields due to increased cast offs.
IS there oil to exploit? Yes, but not nearly as much as is being claimed.
Venezuelan reserves are, most likely, over estimated. The complication arises in political necessity. Look at the history of claimed reserves. There was a sudden bump that is rather suspect. In addition, of what is known, those new finds are even heavier and deeper down than the absolutely proven, which are only around 100 Billion Barrels
ReplyDeleteFurther complicating the estimation is the relative economic feasibility of refining the bulk of Venezuelan oil. It ain't called sour for nothing. It takes more resources and is more complex to distill compared to West Texas Intermediate. You also wind up with lower yields due to increased cast offs.
IS there oil to exploit? Yes, but not nearly as much as is being claimed.