A Canadian tycoon who heads one of North America’s fastest-growing oil companies is advocating for his country to lend its heavy oil expertise to the United States as it seeks to rebuild Venezuela’s oil industry.
Adam Waterous, the executive chair of Strathcona Resources, said Canada’s decades of experience extracting oil sands crude make it uniquely qualified to assist in Venezuela, which produces a similar heavy oil, even though some in Canada worry Venezuela could compete with Canada’s oil sector.
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“We are better positioned than any country in the world, by far, to help rebuild,” Waterous said in an interview. “I would expect, but I don’t know, that an offer of assistance would probably be welcome.”
STRATHCONA WILLING TO SEND TECHNICAL TEAM
President Donald Trump summoned U.S. oil executives last week to the White House to discuss Venezuela. No Canadian companies attended.
Waterous — who attended Harvard University and has U.S. links through former President George W. Bush’s son-in-law Henry Hager, who serves as Strathcona’s managing director — said he would quickly assemble a technical team from his company to go to Venezuela if asked.
“I’m sure there’s not a heavy oil company in Canada that would say no,” he said.
Strathcona, Canada’s fifth-largest oil producer, is not looking to invest in Venezuela, Waterous said. But helping to rebuild Venezuela’s oil industry is an opportunity for Canada to help the United States at a time when Trump’s trade policy has strained relations between the two countries, he said.
The Canada-United States-Mexico Agreement, which has shielded much of Canada’s exports from U.S. tariffs, is up for joint review this year, and some investors have suggested a potential increase in Venezuelan oil flows to the United States could weaken Canada’s leverage.
Waterous said the long-term risk of the U.S. buying Venezuelan crude increases the need for Canada to diversify its markets and build another pipeline to the Pacific.
Canada exports about 90% of its crude to the U.S., but market analysts have suggested a significant increase in Venezuelan heavy crude production would directly compete over time with Canadian barrels refined on the U.S. Gulf Coast.
The discount on heavy Canadian crude to U.S. oil widened by 14% last week, while shares of Strathcona and other Canadian heavy oil producers fell on investor worries about a revival of Venezuela’s oil sector.
Reporting by Amanda Stephenson in Calgary Editing by Rod Nickel
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