The ANZ Group pointed out that investors betting on increased crude oil production in Venezuela need sufficient capital and patience, and that the country's old infrastructure needs to invest billions of dollars to transform it. The bank's strategists Daniel Hynes and Soni Kumari wrote in a report released on Tuesday that due to multiple challenges faced by the industry, the cycle of increasing Venezuelan crude oil production may be significantly longer than in other countries. “Even if the project evaluation process starts immediately, it will be difficult for this round of investment to have a substantial impact on crude oil production before the end of this decade.” ANZ said that after initial exploration and discovery of conventional oil and gas projects, it usually takes 1 to 5 years for major final investment decisions to be implemented. For conventional onshore oil and gas reserves, crude oil production can be achieved within 12 months to 2 years after commissioning; while offshore projects can take up to 7 years. Analysts stated in the report: “The capital expenditure range for adding 1 barrel of crude oil production capacity to conventional onshore oil fields is 10,000 to 30,000 US dollars. Based on this calculation, an additional production capacity of 1 million barrels per day would require an investment of 10 billion to 30 billion US dollars. Meanwhile, the unit capacity cost for deep-sea offshore projects will rise further, and the cost of adding 1 barrel of crude oil production capacity per day can reach up to 60,000 US dollars.” ANZ also warned that investors should be wary of the risk of continuing political unrest in Venezuela, including large-scale civil unrest and the potential impact of the long-term sanctions imposed by the US on the country.

The ANZ Group pointed out that investors betting on increased crude oil production in Venezuela need sufficient capital and patience, and that the country's old infrastructure needs to invest billions of dollars to transform it. The bank's strategists Daniel Hynes and Soni Kumari wrote in a report released on Tuesday that due to multiple challenges faced by the industry, the cycle of increasing Venezuelan crude oil production may be significantly longer than in other countries. “Even if the project evaluation process starts immediately, it will be difficult for this round of investment to have a substantial impact on crude oil production before the end of this decade.” ANZ said that after initial exploration and discovery of conventional oil and gas projects, it usually takes 1 to 5 years for major final investment decisions to be implemented. For conventional onshore oil and gas reserves, crude oil production can be achieved within 12 months to 2 years after commissioning; while offshore projects can take up to 7 years. Analysts stated in the report: “The capital expenditure range for adding 1 barrel of crude oil production capacity to conventional onshore oil fields is 10,000 to 30,000 US dollars. Based on this calculation, an additional production capacity of 1 million barrels per day would require an investment of 10 billion to 30 billion US dollars. Meanwhile, the unit capacity cost for deep-sea offshore projects will rise further, and the cost of adding 1 barrel of crude oil production capacity per day can reach up to 60,000 US dollars.” ANZ also warned that investors should be wary of the risk of continuing political unrest in Venezuela, including large-scale civil unrest and the potential impact of the long-term sanctions imposed by the US on the country.