US President Donald Trump has announced plans to bring US capital back into Venezuela's oil industry, which has been crippled by years of sanctions and mismanagement. The idea is to use force to reroute millions of barrels of crude oil sitting stagnant in Venezuela's storage facilities and sell it in the US.
Trump claims that he will personally manage the profits, with any proceeds going towards US-made products. However, analysts warn that this could cost dearly in both time and money, even if the Chavista administration continues to bend under US pressure.
The Venezuelan oil industry has been hollowed out by years of sanctions and under-investment. Former president Hugo Chavez's decision to force foreign oil companies to renegotiate their contracts with the government put many off, turning those who stayed into junior partners with state-owned oil and gas company PDSVA.
Big Oil is unlikely to make long-term investments in the country unless there are assurances from both the US and Venezuelan governments that their investments will be protected. Analysts warn that even if Venezuela's oil production increases, demand for oil remains sagging due to a global glut, threatening to push prices below what companies need to break even.
The Trump administration's focus on Venezuela's oilfields may be less about short-term politicking and more about securing resources that can be pumped for decades after the domestic fracking boom has wound down.
Trump claims that he will personally manage the profits, with any proceeds going towards US-made products. However, analysts warn that this could cost dearly in both time and money, even if the Chavista administration continues to bend under US pressure.
The Venezuelan oil industry has been hollowed out by years of sanctions and under-investment. Former president Hugo Chavez's decision to force foreign oil companies to renegotiate their contracts with the government put many off, turning those who stayed into junior partners with state-owned oil and gas company PDSVA.
Big Oil is unlikely to make long-term investments in the country unless there are assurances from both the US and Venezuelan governments that their investments will be protected. Analysts warn that even if Venezuela's oil production increases, demand for oil remains sagging due to a global glut, threatening to push prices below what companies need to break even.
The Trump administration's focus on Venezuela's oilfields may be less about short-term politicking and more about securing resources that can be pumped for decades after the domestic fracking boom has wound down.
I'm not sure about this move, seems like a bunch of hot air to me 
Trump thinks he can just swoop in and make everything better with his magic wand 
. Newsflash, mate: oil is a complex business that doesn't work like that 
. If the industry is as messed up as everyone says it is, why not take a more measured approach instead of trying to muscle in? 
, especially if Big Oil doesn't want in on the deal 
. It'll be a nightmare to navigate all those contracts and agreements, not to mention the logistics of getting that oil outta Venezuela 
.
. Will this really make the US any better off? Or is it just another example of Trump playing politics with the economy 
?
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. Do you think Venezuela can even compete? And what about all the Chavista administration's promises that they're trying to make good on? It's like a big game of poker, but with oil rigs 
. Big Oil not gonna invest till they get guarantees, and even then, global demand is tanking 
. Not sure what Trump's endgame is, but it ain't gonna be pretty 
I don't know, it all seems pretty complicated to me.
. Venezuela's oil industry has been in shambles for years and I think it's going to take more than just a few billion dollars to get it back up and running 
. Not to mention the strain it could put on US infrastructure if millions of barrels of oil are suddenly flowing in 
. I'm not saying it's a bad idea, but we need to consider all the potential downsides before we get too excited 
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. Can we really guarantee that this new deal will work out in the end? I'm not convinced 
, Trump thinking he can just swoop in and save the day with some oil magic 
, but what's next? Sending his tweets to the moon 
? seriously tho, have you seen those US storage facilities? they're like a big ol' ghost town 
, millions of barrels just collecting dust... I mean, its not like they're gonna magically make it worth anything without some serious investment 
. What's next? Sending troops to pump oil? 
It feels like the US is just trying to swoop in and save itself from a global glut, but that doesn't mean they should forget about the people affected by this.
. i just don't think this is going to end well, even if trump thinks he can "win" or whatever 
... and then there's the global glut thingy, like demand for oil is just not there anymore. so even if they get some oil out, it's still gonna be hard to make a profit 
his idea might sound crazy but at least he's trying to take control of venezuelas oil industry which has been in a mess for years. and let's be real, who doesnt want to invest in a country with massive oil reserves? 