Opportunity for Beijing and Washington in Venezuela’s Oil Crisis

Despite the different directions and forces propelling U.S. and Chinese oil ties to Venezuela, there are important reasons why Venezuela’s deepening crisis can also be seen as an opportunity to set a positive agenda for a more sustainable pattern of development for Venezuelan oil and possibly for Venezuela itself. In the long run Venezuela’s extra-heavy oil, along with the Canadian Oil Sands, will likely continue to be a major source of energy for the United States, China and beyond. In light of Chinese President Xi Jinping’s and U.S. President Barack Obama’s recent agreement to tackle carbon emissions; policies on the use of extra-heavy oil should play an important part not only in meeting those goals but also in creating standards for global best practice. China and the U.S. should seek ways to work with government, business and civil society counterparts in Venezuela on how the country’s oil can be developed in a more sustainable way for Venezuela and the world. Today’s crisis could then set the stage for a new beginning. More…