New Delhi [India], January 5 : Energy policy expert Narendra Taneja said that while Venezuela holds the world's largest oil reserves, it remains a minor supplier in the global oil market.
He also noted that recent developments may not have an immediate impact on oil prices and could create opportunities for Indian oil companies if sanctions are lifted.
His remarks come after Washington carried out a "large-scale strike against Venezuela", and Nicolas Maduro and his wife, Cilia Flores, were captured and flown out of the country.
Speaking to ANI, Taneja on Sunday said, "Our oil companies know Venezuela very well. We have been dealing with Venezuela for a long time. Most refineries in the world can't handle Venezuelan oil because it's heavy oil. I don't really see any immediate impact on oil prices. Venezuela may have the largest reserves of oil, but they are a very small player in terms of supplying oil to the global system. They produce hardly 9 lakh barrels of oil per day. The bulk of that is exported and goes to China."
He said that Venezuela will start producing 3 million barrels of oil every day within the next year, with the US moving in.
"America is now moving in; chances are that Venezuela will start producing 3 million barrels of oil every day within the next year, which means that oil will start flowing into the global supply system, which is not bad news. And at the same time, I think Indian companies should be looking at this. Since they were sanctioned, these sanctions will now go away, which means our companies can start dealing with Venezuela, can start importing oil from Venezuela," Taneja added.
Maduro and Flores were captured in Caracas and flown out of the country in a joint operation involving intelligence agencies and US law enforcement.
Trump stated that Maduro and his wife have been indicted on charges of alleged "drug trafficking and narco-terrorism conspiracies" in the Southern District of New York and will face trial.
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