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The U.S. decision to ease sanctions and allow it to resume oil imports from Venezuela will hurt Canada’s oil sector, according to industry analysts. It’s another blow by the administration that cancelled the 830,000-barrel-per-day Keystone XL pipeline from Canada in January 2021. Now officials are seeking alternate supplies to replace imports from Russia and keep costs down for Americans. “They should be talking to Canada instead of Venezuela,” says Phil Skolnick, a New York-based analyst with Eight Capital. In question is the massive market for “heavy oil” – which both countries produce – in the U.S. Gulf Coast refining cluster. Canada is now the largest supplier to the region, in recent years helping replace sinking imports from Venezuela amid what IHS Markit called “decades of decline and decay.” Imports from Venezuela stopped entirely in 2019 after the U.S. imposed additional sanctions to pressure authoritarian leader Nicolás Maduro to leave power. The Biden administration says the move to ease the sanctions is a result of Venezuela’s government taking steps to improve humanitarian conditions. But negotiations were, in fact, underway months ago as a potential solution to replace oil from Russia following its invasion of Ukraine. More Venezuelan oil to the […]
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