Venezuela Says $70 Per Barrel Minimum Needed For Oil Investment

“Oil is not renewable and is running out”

Venezuelan Energy Minister Rafael Ramirez said on Wednesday that a minimum price of $70 per barrel was needed to fund the investment necessary to guarantee the petroleum supply required by the market.

Ramirez joined his counterparts from the Organization of Petroleum Exporting Countries, or OPEC, and energy experts in warning that the current price range of $40 to $50 per barrel posed risks to the world’s future energy security.

“The magnitude of the (economic) crisis has generated great concern,” especially for Third World countries, including those “that have the potential to export resources like petroleum,” Ramirez said at an international seminar sponsored by OPEC.

The Venezuelan energy minister said crude oil “is not renewable and is running out,” while the drop in prices has already caused “delays or suspensions of projects,” especially costly ones, such as projects in offshore areas and Canada’s tar sands region in Alberta.

Despite the current situation, “we have the responsibility to maintain our investments” and “meet world demand” for oil, Ramirez said.

Latin America Herald Tribune