The US is on the cusp of embarking on an ambitious oil rush in Venezuela, with President Donald Trump predicting that American companies will swoop in to fill the energy vacuum. But industry leaders and experts are skeptical, arguing that there's no appetite for a major expansion - unless Trump starts pressuring them to take the plunge.
While Trump has boasted about the potential for huge profits from extracting oil in Venezuela, his claims have been met with skepticism by companies like ConocoPhillips, ExxonMobil, and Chevron. All three US giants have declined to comment on any future plans or investments in Venezuelan oil, fueling doubts that an oil rush is on the horizon.
In fact, many believe that no major oil producer would invest in a country where global prices are hovering around $55-60 per barrel, making it difficult for them to reap significant profits. Yale professor Jeffrey Sonnenfeld notes that companies like these have already cut back massively on capital expenditures and workforce reductions, leaving little room for expansion.
The stakes aren't really about oil, however. Trump is using the oil rush as a way to divert attention from domestic vulnerabilities, including his administration's lack of progress on key issues. His claims that US oil companies were consulted in advance on Venezuelan plans have been disputed by multiple officials, further eroding credibility.
Pushing ahead with this agenda could be akin to "pounding their hand with a sledgehammer," according to Sonnenfeld. The laws of economics can't be changed magically just by Trump's rhetoric and actions. What's needed is for the CEOs of these companies to have the character to stand up to his pressure and prioritize shareholder interests over short-term gains.
As Venezuela's oil infrastructure continues to degrade, it's unclear how much potential there is for an oil rush. The country's national oil company, Petróleos de Venezuela (PDVSA), is effectively bankrupt, and foreign investment would require stable relations with the US and Europe - a condition that seems far from met.
The real question is why Trump is pushing this agenda in the first place. Is it really about securing American interests or is he using this as a way to consolidate power and deflect attention? One thing's for sure: an oil rush in Venezuela seems doomed from the start, at least without significant changes in global dynamics.
While Trump has boasted about the potential for huge profits from extracting oil in Venezuela, his claims have been met with skepticism by companies like ConocoPhillips, ExxonMobil, and Chevron. All three US giants have declined to comment on any future plans or investments in Venezuelan oil, fueling doubts that an oil rush is on the horizon.
In fact, many believe that no major oil producer would invest in a country where global prices are hovering around $55-60 per barrel, making it difficult for them to reap significant profits. Yale professor Jeffrey Sonnenfeld notes that companies like these have already cut back massively on capital expenditures and workforce reductions, leaving little room for expansion.
The stakes aren't really about oil, however. Trump is using the oil rush as a way to divert attention from domestic vulnerabilities, including his administration's lack of progress on key issues. His claims that US oil companies were consulted in advance on Venezuelan plans have been disputed by multiple officials, further eroding credibility.
Pushing ahead with this agenda could be akin to "pounding their hand with a sledgehammer," according to Sonnenfeld. The laws of economics can't be changed magically just by Trump's rhetoric and actions. What's needed is for the CEOs of these companies to have the character to stand up to his pressure and prioritize shareholder interests over short-term gains.
As Venezuela's oil infrastructure continues to degrade, it's unclear how much potential there is for an oil rush. The country's national oil company, Petróleos de Venezuela (PDVSA), is effectively bankrupt, and foreign investment would require stable relations with the US and Europe - a condition that seems far from met.
The real question is why Trump is pushing this agenda in the first place. Is it really about securing American interests or is he using this as a way to consolidate power and deflect attention? One thing's for sure: an oil rush in Venezuela seems doomed from the start, at least without significant changes in global dynamics.
. Companies like ConocoPhillips, ExxonMobil, and Chevron are super cautious about investing in a country with such volatile global prices 
. I mean, $55-60 per barrel is just too low for most major oil producers to make it worthwhile. And let's be real, Trump's claims that US companies were consulted on Venezuelan plans have been pretty shaky 
.
. It seems more like a way for Trump to distract from his administration's shortcomings and consolidate power 
. The laws of economics can't be magic 
, so I think it's unlikely that an oil rush in Venezuela will actually happen without some major changes in global dynamics 
.
It's basically bankrupt! I'm not sure what Trump expects companies to make out of a country with such a shaky energy infrastructure 
.
like 55-60 bucks a barrel? that's pretty low. and have you seen the state of venezuela's oil infrastructure? 
it's basically broken. i think trump is just trying to make himself look good, but really he's just digging his own hole 
I mean, come on, $55-60 per barrel is like a drop in the bucket for these massive corporations. And don't even get me started on how they're cutting back on capital expenditures and workforce reductions 
... that's not exactly the sign of a company itching to expand into Venezuela.
. I mean, who needs to talk about actual policy when you can just make some loud claims about oil and pretend it's going to solve everything? 
The thing is, these CEOs are smart enough to see through that, and they're not going to let Trump bully them into making a decision that'll tank their shareholders. It's all just a big show, if you ask me 
. I mean, companies like ConocoPhillips, ExxonMobil and Chevron are already super tight on their budgets, they can barely cover their own costs let alone invest in some other country's oil 
.
Those oil giants are not going to risk their shareholders' money on a country with a history of nationalization and hyperinflation. And let's be real, the US has enough problems at home to deal with, like healthcare and climate change. Is this really about securing American interests or is it just another example of Trump being Trump? 
. Companies like ConocoPhillips, ExxonMobil, and Chevron are not gonna just swoop in because he says so. I mean, have they not seen the numbers? $55-60 per barrel is not exactly the best profit margin, you know? And let's be real, if Trump can't even get them to make a commitment without being asked, what makes him think they'll invest big time?
. We can't predict the future, but who knows maybe Trump's got a secret plan to make it all work 
. And let's not discount the potential economic benefits - new jobs, new industries, new opportunities for American companies to grow and thrive 
.