Venezuela oil comeback could affect Canada's oilpatch, analysts say

A reported U.S. action that removed Venezuela's president has prompted discussion about a possible return of Venezuelan heavy oil to international markets, and Canadian energy stocks fell on Monday; analysts say a major recovery in Venezuelan production would likely take years and large investment.

U.S. action this week was reported to have removed Venezuela's president, and Canadian energy company stocks fell on Monday. That event has prompted renewed attention to whether Venezuela could rebuild its heavy oil output and re-enter key export markets. Canada is producing record amounts of oil, nearly five million barrels per day, and sends most of it to U.S. refineries. Analysts quoted in the coverage say restoring Venezuela's industry would require large capital spending and political stability, so any significant rebound would likely take years. Key facts: - The report describes a U.S. action that removed Venezuela's president and says Canadian energy stocks dropped on Monday following the news. - Venezuela holds the world's largest proven oil reserves and produces heavy crude similar to that from Western Canada. - Canada is producing about five million barrels per day at record levels, with the majority exported to the United States. Summary: A recovery in Venezuelan production could, over time, change competition for heavy crude in some markets, but analysts say a substantial rebound would require major investment and stable governance and is likely years away. Undetermined at this time.