Big Oil Giants Show No Interest in Trump's Venezuela Plan
US President Donald Trump's enthusiasm for acquiring Venezuela's vast oil reserves may be waning. The reason is simple: there isn't enough of it to justify the investment. With a global surplus of oil, prices have plummeted since 2021, rendering Venezuelan crude uneconomical at current prices.
The US has already taken out the previous Venezuelan president and seized its largest oil reserves. Yet, street protests in Iran and other major producers barely affected oil prices. In fact, the price of Brent crude is so low that even restoring Venezuela's decrepit infrastructure wouldn't justify new investment.
Even if there was oil to be had, securing it would be a challenging task. Crude oil isn't a resource easily plundered or looted, according to Emily Meierding, an expert at the Naval Postgraduate School in California.
Western oil companies have withdrawn from Iraq after regime change, citing production disruptions and non-payment by cash-strapped governments. The same may happen with Venezuela, given Trump's track record of short-lived regimes.
The economic case for Venezuelan oil is weak, as the US economy has become less dependent on it over time. Energy efficiency improvements and the growing importance of services have reduced reliance on oil. Oil now accounts for 38% of energy use in the US, down from 50% in the mid-1970s.
US companies may find it easier to procure oil domestically than seek out the lucrative Venezuelan reserve. The legacy of previous interventions in countries like Iran and Iraq serves as a reminder that exploiting oil resources often comes with unintended consequences.
US President Donald Trump's enthusiasm for acquiring Venezuela's vast oil reserves may be waning. The reason is simple: there isn't enough of it to justify the investment. With a global surplus of oil, prices have plummeted since 2021, rendering Venezuelan crude uneconomical at current prices.
The US has already taken out the previous Venezuelan president and seized its largest oil reserves. Yet, street protests in Iran and other major producers barely affected oil prices. In fact, the price of Brent crude is so low that even restoring Venezuela's decrepit infrastructure wouldn't justify new investment.
Even if there was oil to be had, securing it would be a challenging task. Crude oil isn't a resource easily plundered or looted, according to Emily Meierding, an expert at the Naval Postgraduate School in California.
Western oil companies have withdrawn from Iraq after regime change, citing production disruptions and non-payment by cash-strapped governments. The same may happen with Venezuela, given Trump's track record of short-lived regimes.
The economic case for Venezuelan oil is weak, as the US economy has become less dependent on it over time. Energy efficiency improvements and the growing importance of services have reduced reliance on oil. Oil now accounts for 38% of energy use in the US, down from 50% in the mid-1970s.
US companies may find it easier to procure oil domestically than seek out the lucrative Venezuelan reserve. The legacy of previous interventions in countries like Iran and Iraq serves as a reminder that exploiting oil resources often comes with unintended consequences.
. I mean, prices are so low, it doesn't make sense for any company to risk everything just to get some oil that's basically worthless at the moment 
. And let's be real, Venezuela's got a lot of problems to fix before anyone can even think about investing in its oil reserves 
. It's like they say, if you want to find gold, you gotta dig for it first 
... or in this case, invest time and money into fixing the country's infrastructure 
.
It's just gonna end up being a mess, and someone else is gonna have to deal with the fallout. And honestly, if Western oil companies are smart, they're gonna stick to what they know: getting oil from places where it's not, you know, totally screwed up 
just great, another failed plan from Trump... i mean, who needs 38% of energy use coming from oil when you've got more efficient tech? 
and btw, what's the point of plundering Venezuela's resources if they're not even gonna make a dent in the global surplus? 
. I mean, they ended up pulling out of Iraq after the regime change because of production disruptions and unpaid bills 
️. I think Trump needs to take a step back and consider the bigger picture here... or maybe just stick to tweeting about how great his hair looks 
.
. It's like, come on, Donald, think about the long game here 
. The fact that oil prices are low and global production is high just means there's no way to justify risking lives and stability in Venezuela just for a few bucks 
. It's all about energy efficiency and services now, you know? We don't need more oil addiction 
. The economic case for Venezuela is weak, if you ask me... we should be focusing on sustainable solutions, not exploiting a country like this 
. and let's not forget trump's track record with regime changes - it's always a recipe for disaster 
i mean western companies withdrew from iraq after regime change cuz they didnt pay us dollars lol maybe theyd do the same to venezuela if trump keeps changin presidents 
. And let's be real, the US is all about energy efficiency and services these days...oil just isn't as crucial as it used to be 
. Western oil companies got smart from experience in Iraq and are unlikely to take the risk again