They warned that the power system represents the biggest obstacle, with a deficit of more than 1,500 MW and prolonged blackouts
The Daily Journal.- Executives from major international oil companies warned this week that Venezuela’s power supply represents the biggest obstacle to their projects, citing a deficit of more than 1,500 megawatts (MW) and blackouts lasting up to 10 hours a day that make their projects unviable.
During the International Oil and Gas Summit in Caracas, executives said the unresolved electricity deficit is preventing them from moving forward with oil industry expansion plans.
According to a Reuters report, Hunter Hunt, CEO of Hunt Energy Holdings, acknowledged that he did not have an answer for how to address the problem. However, he noted that the country’s peak demand of around 16,000 MW “is not so high as to make solutions impossible.”
The executive said, “There is a fundamental understanding in Venezuela that, if we really want to see rapid development, a much more coordinated effort is necessary.”
Business leaders and representatives from other energy companies have presented the government with projects to capture and use large volumes of gas for power generation. However, none of these initiatives have moved forward.
Venezuela’s unreliable power supply remains a bottleneck, holding back investments committed by Chevron, Eni and other multinational companies.
With information from Reuters
