Former U.S. National Security Advisor John Bolton ally Richard Hamm has called for political and financial assurances before energy companies consider operations in Venezuela’s oil sector, citing risks from regulatory instability and asset seizures. The remarks come amid renewed interest in Venezuela’s vast but underdeveloped hydrocarbon resources.
- Venezuela holds 2.7 trillion barrels of proven and probable oil reserves, second only to Saudi Arabia.
- PDVSA currently produces approximately 820,000 barrels per day, far below its 2014 peak of over 3.5 million barrels per day.
- Richard Hamm, a Trump ally, demands binding international guarantees to prevent asset seizures and ensure dispute resolution.
- Up to $35 billion in potential foreign investment could be deterred without legal protections.
- Restoring production to 2 million barrels per day could take five years with stable investment conditions.
- U.S.-based firms Alta Energy and Minera Sur are conducting preliminary assessments in the Orinoco Belt and Lake Maracaibo.
Richard Hamm, a close associate of former President Donald Trump and a prominent figure in pro-market energy policy circles, has publicly stated that international oil producers would require robust guarantees before investing in Venezuela’s oil sector. Speaking at a London energy forum, Hamm emphasized that without legal protections against expropriation and clear dispute resolution mechanisms, companies would remain hesitant despite Venezuela’s estimated 2.7 trillion barrels of proven and probable reserves—second only to Saudi Arabia globally. Hamm specifically highlighted the need for binding international agreements and third-party arbitration clauses to safeguard capital. He noted that past attempts to revive Venezuela’s oil industry, such as the 2021 agreement with China National Petroleum Corporation (CNPC), failed due to lack of enforceable commitments and deteriorating geopolitical conditions. The country’s state-owned Petróleos de Venezuela, S.A. (PDVSA), currently produces roughly 820,000 barrels per day, well below its pre-2014 peak of over 3.5 million barrels per day. The call for guarantees coincides with growing activity by U.S.-based exploration firms monitoring Venezuela’s offshore Orinoco Belt and Lake Maracaibo basin. Several companies, including Houston-based Alta Energy and Atlanta-based Minera Sur, have initiated preliminary feasibility assessments. However, none have committed capital pending regulatory clarity. Hamm warned that the absence of a stable framework could deter up to $35 billion in potential investment over the next decade. Market analysts suggest that if such assurances were established, international firms could increase Venezuela’s output by as much as 1.2 million barrels per day within five years. The move would impact global crude supply dynamics, particularly in the Atlantic Basin, where U.S. refineries are already under pressure from supply constraints in the Gulf of Mexico and the Middle East.