Canadian oil will remain competitive and with low risk even if production in Venezuela increases after the capture of President Nicolas Maduro, Canadian Prime Minister Mark Carney said on Tuesday.
His comment comes amid statements by US President Donald Trump that American oil companies are ready to enter Venezuela and invest billions of dollars to restore production after the political changes in the country. Venezuelan crude is heavy and similar in characteristics to that from Canadian oil sands, leading some analysts to speculate that the Canadian product could be displaced from the market.
According to Carney, however, such a scenario does not threaten Canada's positions. He stressed that Canadian oil remains "clearly low-risk and low-value", making it attractive to investors and buyers. The main advantage is the stable political and regulatory environment in Canada, which significantly reduces geopolitical and trade risks compared to other producers.
Carney added that restoring a functioning economy in Venezuela would lead to greater oil production and greater stability in the Western Hemisphere - a development that Canada welcomes. "Greater prosperity in Venezuela is positive, but we clearly see the long-term competitiveness of Canadian oil," the prime minister said.
He also pointed out that a planned carbon capture and storage project in the oil-producing province of Alberta would make Canadian crude more attractive to carbon-sensitive customers and strengthen its position in the medium and long term.
In November, Carney signed an agreement with the premier of Alberta to ease some climate regulations in order to stimulate investment in the energy sector, while also promoting the construction of a new oil pipeline to the west coast. So far, however, no private company has committed to such a project.