Alex Cranberg, a veteran American wildcatter, says he’s prepared to launch drilling operations in Venezuela following discussions with former President Donald Trump. His announcement, while aspirational, marks a potential shift in U.S. energy engagement with the Latin American nation, which holds the world’s largest proven oil reserves.
- Alex Cranberg plans to begin drilling in Venezuela’s Orinoco Belt within 18 months.
- Venezuela holds 303 billion barrels of proven oil reserves, with 50 billion barrels recoverable in the Guayana Basin.
- Cranberg’s project involves a $1.2 billion investment and first production by late 2027.
- Potential output could add 2.5 million barrels per day to global supply by 2030.
- ExxonMobil (XOM), Chevron (CVX), and Occidental (OXY) remain cautious due to sanctions and political risk.
- A successful project could reduce Brent crude prices by $5–$8 per barrel over the medium term.
Alex Cranberg, a U.S.-based independent oil explorer known for high-risk, high-reward ventures, has declared his intent to initiate onshore drilling in Venezuela’s Orinoco Belt within the next 18 months. Cranberg, who claims to have been present during a private 2024 meeting between Donald Trump and Venezuelan opposition figures, said the conversation laid the groundwork for renewed American investment in the country’s vast hydrocarbon resources. Venezuela holds an estimated 303 billion barrels of proven oil reserves—more than any other nation—though decades of mismanagement and international sanctions have left most fields underdeveloped. Cranberg’s plan targets the Guayana Basin, where preliminary assessments suggest recoverable reserves exceeding 50 billion barrels. His proposed entry would involve partnerships with local firms and a phased investment of $1.2 billion, with first production expected by late 2027. The announcement comes amid shifting U.S. energy policy signals, with several major oil companies monitoring the situation. ExxonMobil (XOM), Chevron (CVX), and Occidental Petroleum (OXY) have all maintained a cautious stance, citing unresolved sanctions and political uncertainty. However, market watchers note that a successful U.S.-backed project could increase global oil supply by up to 2.5 million barrels per day by 2030, potentially lowering Brent crude prices by $5–$8 per barrel over the medium term. The move is likely to affect not only energy stocks but also financial markets in Latin America. Venezuela’s state-owned Petróleos de Venezuela (PDVSA) has a market valuation of approximately $18 billion, though it is currently excluded from most international exchanges. Any U.S. drilling activity could trigger a reassessment of risk premiums in emerging market energy equities, particularly in the region.