Luis A. Pacheco, nonresident fellow at the Baker Institute Center for Energy Studies: ““As the expiration date of oil licenses looms closer, PDVSA will be forced to rely on ‘rogue’ trading even more, as it indeed did during the first Trump presidency. Venezuela could continue to exploit such channels to maintain its oil exports, even if sanctions are tightened. As to how long that will be a sustainable solution, it will depend on the Americans’ willingness or efficacy in enforcing the so-called secondary sanctions on buyers and transporters. Moreover, these cargoes will have to compete in China, the preferred destination, with Iranian and Russian crudes in terms of prices and refinery yields, and will be sold at steep discounts, not to forget that part of those volumes also serve as debt repayment to the Chinese. If foreign companies finally exit Venezuela…”
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A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.












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Jonathan C. Hamilton
Partner,
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Raul Herrera
Partner, Corporate &
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Arnold & Porter
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Jorge Kamine
Partner, Corporate &
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Jeremy Martin
Director,
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Partner,
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Affairs, Chevron
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