Venezuela Oil And Gas Exploration And Development Of The Investment Environment Research

The rapid economic development makes China generate great demand for energy. In order to ensure the oil security, to strengthen the international cooperation and promote multiple oil import resources is the exclusive approach for China. There are lots of studies, from both domentic and international scholars, on the international investment environmentin including energy area. Based on the previous study achievement, the author makes deep study on mineral investment environment theory and gives real case study.This paper studies on Venezuela's nature, ecomonics, politics, culture etc., which are the elements to influence the investment. It gives detail descriptions for the distribution of oil and gas resources, and the level of exploration and development.Based on the qualitative description of the investment environment in Venezuela, this paper applies Robert's Rating Scale method and the analytic hierarchy process to quantitative analysis by selecting the most key factor which reflects the quality of the investment environment.In theory, fully considering our current goal in exploration and development for oil and gas internationally with huge investment funds, long period and high risk characteristics, this paper builds the assessment system and measure criterias for the investment environment of mineral resources, and applies this theory in Venezuela's oil exploration and development project to implement the real case study for Venezuela's investment environment.On the base of qualitative and quantitative analysis, the paper thinks the investment environment in Venezuela is not the ideal one. There are lots of risks including the most serious ones, for example, foreign currency control, inflation, government corruption and bad society security. However, Venezuela's investment environment also has great advantages as follows:1. Venezuela has tremendous resource potential with a good basis for cooperation. The remaining recoverable reserves is about 11.923 billion tons in Venezuela in 2007, while annual oil production was 119.5 million tons, reserve-production ratio is 99.8; natural gas reserves of 4,708,500,000,000 remaining parties, the amount of 24.55 billion the year with an annual output of natural gas side, reserve-production ratio is 191 . In addition, it's proven oil reserves of 309.063 billion tons overweight, recoverable reserves of 9.939 billion tons. Venezuela is one of the largest reserves of oil country in the world.2. The political circumstance in Venezuela is stable. In recent years, the several international wars caused by Oil brought huge loss to our country. Political circumstance is one of the most important contents we need to consider when we want to do the investment in exploration and development for oil and gas. In this paper, it shows that there is very little posibility to be in war in Venezuela in recent years because Venezuela has better democratic system which can make the power transfering peacefully. Therefore, though Venezuela has some unstable elements, the overall polical circumstance is comparing stable.3. Venezuela has established the friendly relationship with China and welcomes the investment from our country by providing many preferential policies. The key area is to strengthen the cooperation in exploration and development for oil and gas. Currently, the opened oil and gas exploration and development market is very precious to our country. At the mean time, since both Venezuela and China are the third world countries, the two countries should strengthen the cooperation to implement common prosperity through mutual benefits.By applying a variety of analysis tools, this paper studies the investment environment from multiple perspectives. The result shows that though the Venezuela's oil and gas investment environment is not perfect, it is still a good choice. We could increase the investment in the exploration and development for oil and gas in Venezuela at suitable opportunity.