Democratic Congress could cool some oil investment in Venezuela: analysts

Democratic control of one or both houses of Congress after the midterm elections is expected to boost oversight of US involvement in Venezuela’s oil sector, which could cool some oil investment there, energy analysts say.

“Congressional scrutiny could have a significant impact on investment in Venezuela,” David Goldwyn, chair of the Atlantic Council Global Energy Center’s Energy Advisory Group, told Platts, part of S&P Global Energy.

Traditional investors like Chevron will be fine, and projects that align with Venezuela’s new hydrocarbons law and regulations should be secure, Goldwyn said. Both Democrats and Republicans want Venezuela to be self-sustaining, and foreign investment is essential for that, he said.

But a Democratic Congress would likely scrutinize idiosyncratic arrangements like the US deal with North America Blue Energy Partners (NABEP), focusing on why and how the company was chosen, Goldwyn said.

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