Bob Geddes knows the Canadian oil business, having worked in the sector for more than four decades.

He also knows the oil business in Venezuela, as Calgary-based Ensign Energy Services — where he serves as company president — has operated in that country for about 25 years.

The announcement by President Donald Trump last week that the United States has reached an agreement to take control of Venezuelan oil reserves — as the South American country seeks to increase oil production after years of deterioration — warrants attention in Canada, said Geddes.

More competition for Canadian crude heading south is coming, over time.

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“We’ve got the only rigs drilling in Venezuela right now, so we’ve got a pretty good idea of what we think is going on . . . Venezuela has basically become America’s gas tank,” Geddes said in an interview Monday.

“For Canada, we should be doubling down on our pipeline to the West Coast, because it could create some challenge long term. I don’t see any challenge short term. Venezuela is going to take a while to develop.”

Speaking to reporters on Tuesday, Premier Danielle Smith said most analysts expect an “expensive and long haul” before Venezuela can significantly increase its output, while Alberta can provide a safe environment to companies looking to develop more resources.

“We want to look at ways that we can get more of our product to Europe.........

© Calgary Herald