US EditionIntervening in Venezuela for the Oil Makes Little Sense
US sanctions cut Venezuelan oil exports nearly in half last month, complicating Trump’s plan to control the country’s vast 303 billion barrel reserves.
- At a Mar-a-Lago press conference, President Donald Trump said the US would `run the country` and urged United States oil companies to invest billions to rebuild Venezuela's oil infrastructure.
- US sanctions and a tanker quarantine have led the Trump administration to confiscate at least two sanctioned oil tankers, while PDVSA cuts crude output as exports fall from about 950,000 bpd to around 500,000 bpd.
- Analysts note that Venezuela's oil infrastructure and PDVSA suffered years of underinvestment, with Energy Aspects estimating a $10 billion cost to add 500,000 bpd and tens of billions over years for larger recoveries.
- If sanctions are lifted, Venezuela could reach 2.5 million barrels per day within three to five years from below one million, risking a supply glut that may force OPEC to adjust quotas.
- With reserves estimated at about 303 billion barrels, past nationalisations, lawsuits and $160 billion in debt mean foreign oil companies will be cautious, requiring debt restructuring and arbitration settlements.
22 Articles
22 Articles
Why Trump's plan for Venezuelan oil wealth is slippery
After a US military operation led to Nicolas Maduro’s capture, President Donald Trump has signalled plans to reopen Venezuela’s vast oil sector to American companies. Despite holding the world’s largest proven reserves, years of sanctions, underinvestment and rivalry with China raise questions over whether Venezuela’s oil revival is realistic
PBS NewsHour
BizTocTrump's idea to seize Venezuela's oil industry faces major hurdles
Venezuela's oil industry is in disrepair after years of neglect and international sanctions, so it will likely take years and major investments before production can increase dramatically.
Venezuela’s oil will cost US oil firms billions of investment before earning dollar one
US President Donald Trump says that the US will take over running Venezuela and get the oil sector back on its feet so everyone can “make lots of money.” But underinvestment and corruption means they will have to invest billions first.
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