The Relentless Crypto Billionaire Who Moved to Venezuela in Pursuit of Oil

Cryptocurrency mogul Fred Ehrsam has relocated to Venezuela in an attempt to establish himself as a major player in the country's beleaguered oil industry. As the co-founder of crypto exchange Coinbase, Ehrsam, at just 38 years old, has no prior experience in the energy sector. Nonetheless, his ambition and connections have led him to sign production-sharing contracts with state-owned oil company Petróleos de Venezuela.

Ehrsam's venture, Primavera, is a special-purpose entity set up to invest in Venezuela's oil and gas industry. Primavera has signed contracts for less sought-after but potentially lucrative fields in the Budare oil block, a region with lighter crude oil. Despite skepticism from some, Ehrsam's relentless pursuit has led to progress in Venezuela's oil patch.

The U.S. has been urging major oil companies to invest $100 billion in Venezuela's oil fields, but few have heeded the call. Chevron recently announced a $7 billion investment over five years, a move seen as a win for President Trump following months of negotiations. Primavera is working to bring clean, reliable and low-cost energy to Venezuela, aiming to utilize local industry and bring back Venezuelan workers who left during Hugo Chávez's rule.