Trump's Venezuela Oil Vision: Fast Cash or Long Haul?

Former US President Donald Trump has made a bold claim, suggesting American oil companies could have Venezuela's vast energy sector "up and running" within just 18 months following the recent removal of President Nicolás Maduro. This ambitious timeline, however, faces significant scepticism from industry analysts and even the very firms Mr Trump hopes will drive the revival. Speaking to US broadcasters, Mr Trump outlined a vision where substantial investment from oil companies would be either reimbursed by the US government or through future oil revenues. He emphasised his strategic goal: to leverage Venezuela's immense reserves to help stabilise global oil prices, stating that a productive Venezuela would benefit the United States by keeping costs down. Representatives from major US petroleum companies were reportedly set to meet with the Trump administration to discuss these plans. Yet, experts paint a far less optimistic picture. Previous analysis indicated that restoring Venezuela's oil output to its former glory could demand tens of billions of dollars and potentially a decade of intensive work. They doubt such a rapid turnaround would significantly alter global oil markets, stressing the need for a stable government and the inherently long lead times for major energy projects. Venezuela boasts the planet's most extensive proven oil reserves – an estimated 303 billion barrels. However, its production has been in steady decline since the early 2000s. Adding to the challenge, Venezuelan crude is dense and challenging to process. Currently, only one US firm, Chevron, maintains operations there. When asked about Mr Trump's proposals, Chevron prioritised staff safety and asset integrity, while another major player, ConocoPhillips, stated it was "premature to speculate" on future ventures. Mr Trump and Vice President JD Vance also reignited claims that Venezuela "stole" American oil. The reality, however, is more nuanced. Venezuela nationalised its oil industry in 1976 and further tightened state control over foreign-held assets in 2007. A World Bank tribunal later ordered Venezuela to pay ConocoPhillips $8.7 billion in reparations for these actions, a sum that remains unpaid. Experts clarify that while compensation disputes exist, the oil reserves themselves inherently belonged to Venezuela, making the "stolen" claim overly simplistic. Ultimately, Mr Trump's vision for a swift Venezuelan oil renaissance appears to clash with the practicalities of a complex industry, historical grievances, and the cautious approach of the energy sector itself. The path from political upheaval to full-scale oil production seems destined to be a long and costly one, regardless of presidential ambition. --- Managing your business finances? TaxAce provides smart online accountancy services for UK businesses with flexible monthly plans. Image and reporting: https://www.bbc.co.uk | Read original article