The Beginning Of The End For Petrocaribe?

Chronic underinvestment in Venezuela's oil sector and mounting economic challenges confronting the new government of President Nicolas Maduro, have seen the oil-rich state revisit the terms of its Petrocaribe subsidy programme with Central American and Caribbean member states. Although only minor changes to the otherwise generous terms, Business Monitor's Oil & Gas team believes that this could be the first step in a broader trend that could see the programme be unwound altogether. Julie Beckenstein, an analyst with Business Monitor's Oil & Gas research team in New York, explains what the thinking behind the recent changes in the terms of Petrocaribe was, and how this may affect the outlook for Venezuela's oil and gas sector.