President Trump's bold claim that the US will rush to fill Venezuela's oil vacuum and make a "lot of money" is premature at best, according to industry leaders and economists. ConocoPhillips, ExxonMobil, and Chevron - three of the largest oil companies in the US - have declined to publicly share any plans to extract Venezuelan oil or lack thereof.
In fact, experts warn that no big oil producer would be foolish enough to oversee a major expansion when global prices are hovering around $55-60 a barrel. Yale professor Jeffrey Sonnenfeld points out that the only rationale for wading into a volatile country with crumbling infrastructure is political in nature. "The real reason for any oil company to go in there is not the structure of the firm or their strategic positioning... It has to do with the character weakness of whoever the CEO is that gets browbeaten [by the Trump administration] into doing this," Sonnenfeld said.
Companies like ConocoPhillips and ExxonMobil are already cutting back massively on capital expenditures and reducing workforce by 20-25%. These aren't companies looking to expand, but rather contract. The idea of investing in a country with no clear message over the scope of a long-term military presence or a legitimate government is daunting.
Trump's administration is trying to use coercion and pressure to get oil companies on board. He has suggested that the US will "run the country" for years without a clear plan, and that the government might reimburse oil companies with a "tremendous amount of taxpayer money" if they invest in Venezuela. However, Sonnenfeld disagrees, pointing out that production is unlikely to pick up unless there are guarantees.
Venezuela's oil infrastructure has degraded significantly over the last decade, with rusted pipes, skilled workers moving out, and plants in disrepair. The national oil company, Petróleos de Venezuela or PDVSA, is effectively bankrupt and unable to lead a recovery. There's also a problem of standing: companies might be wary of expanding in a country whose government has confiscated their assets before.
In reality, the stakes aren't really about oil. Trump's plan seems more like a maneuver to divert attention from areas of domestic vulnerability, according to Sonnenfeld. The president's account of events contradicts that of Secretary of State Marco Rubio and Secretary of Energy Chris Wright. Industry leaders are now in a tough spot where they have to decide if they want to take the risk of contradicting Trump's message on a very contingent issue.
Going along with Trump's Venezuelan plans would be akin to "pounding their hand with a sledgehammer," Sonnenfeld said. The laws of economics can't be changed magically just by what Trump says and does. Companies need to have the character to stand up to it, not be bullied into investing in a volatile country.
In fact, experts warn that no big oil producer would be foolish enough to oversee a major expansion when global prices are hovering around $55-60 a barrel. Yale professor Jeffrey Sonnenfeld points out that the only rationale for wading into a volatile country with crumbling infrastructure is political in nature. "The real reason for any oil company to go in there is not the structure of the firm or their strategic positioning... It has to do with the character weakness of whoever the CEO is that gets browbeaten [by the Trump administration] into doing this," Sonnenfeld said.
Companies like ConocoPhillips and ExxonMobil are already cutting back massively on capital expenditures and reducing workforce by 20-25%. These aren't companies looking to expand, but rather contract. The idea of investing in a country with no clear message over the scope of a long-term military presence or a legitimate government is daunting.
Trump's administration is trying to use coercion and pressure to get oil companies on board. He has suggested that the US will "run the country" for years without a clear plan, and that the government might reimburse oil companies with a "tremendous amount of taxpayer money" if they invest in Venezuela. However, Sonnenfeld disagrees, pointing out that production is unlikely to pick up unless there are guarantees.
Venezuela's oil infrastructure has degraded significantly over the last decade, with rusted pipes, skilled workers moving out, and plants in disrepair. The national oil company, Petróleos de Venezuela or PDVSA, is effectively bankrupt and unable to lead a recovery. There's also a problem of standing: companies might be wary of expanding in a country whose government has confiscated their assets before.
In reality, the stakes aren't really about oil. Trump's plan seems more like a maneuver to divert attention from areas of domestic vulnerability, according to Sonnenfeld. The president's account of events contradicts that of Secretary of State Marco Rubio and Secretary of Energy Chris Wright. Industry leaders are now in a tough spot where they have to decide if they want to take the risk of contradicting Trump's message on a very contingent issue.
Going along with Trump's Venezuelan plans would be akin to "pounding their hand with a sledgehammer," Sonnenfeld said. The laws of economics can't be changed magically just by what Trump says and does. Companies need to have the character to stand up to it, not be bullied into investing in a volatile country.
gotta say, trump's move on venezuela oil is whack 
companies aren't gonna jump into a volatile situation like that without some serious guarantees. it's all about economics, man 
and trump's plan just isn't adding up 
those oil giants are already cutting back, no way they're gonna start investing in venezuela right now 
, and now Trump's trying to use pressure to get them to invest in Venezuela? That's just not gonna work 
. Companies need a solid plan, not just a lot of hot air 
from the President. And let's be real, Venezuela's infrastructure is pretty much in shambles 
, making it a huge risk for any oil company. Maybe Trump's trying to distract us from other issues, but I don't think investing in a volatile country like that is the answer 
. Companies need to focus on their own bottom line, not get caught up in politics 
.
. It seems like they're super cautious about the whole thing, especially with global prices being relatively low 
. I mean, who wants to invest in a country with crumbling infrastructure and no clear plan 
? It doesn't sound like a recipe for success to me 
. Trump's trying to use pressure to get them on board, but Sonnenfeld's right, companies need guarantees before they start pumping oil 
. And let's be real, there are more pressing issues in the US that Trump should be focusing on instead of Venezuela 
. I mean, even the big oil companies like ConocoPhillips and ExxonMobil aren't talking about it, which already raises some red flags. Plus, have you seen the state of Venezuela's infrastructure lately? It's a disaster 
. And let's not forget that Trump is basically saying they'll just "run the country" without a plan 
. That sounds super sketchy to me.
. Let's see how things play out!
$55-60 a barrel is like cheap gas, no one's getting rich off Venezuela 
]
, and experts say global prices at $55-60 a barrel is way too high to take on that risk 
not be bullied into it 
and there's no clear plan or message from the government 
. It's more like a diversion tactic for Trump's domestic issues 
. Don't wanna pound hand with sledgehammer, Sonnenfeld says 
. I mean, can't they see that it's not worth taking a risk like that? And let's be real, the real reason behind this is probably because Trump wants to distract from his own domestic issues 
!
like he's trying to shift attention from other issues or something 
companies need to be cautious and not get bullied into doing something that could hurt them financially 
. The idea of investing in such a volatile country with no clear plan is just too much to handle 
. Plus, Trump's using coercion and pressure instead of making a solid business case... it's like he's trying to force companies into doing something they don't want to do 
The dude doesn't know the first thing about economics or international politics. Those oil companies aren't gonna fall for his tricks that easily. I've seen some of them cutting back hard - 20-25% workforce reduction? That's not expansion, that's contraction! 
.
. I mean, with all these experts saying no one's going to invest in a country with a crumbling infrastructure and no clear plan... it just doesn't add up. Trump's trying to pressure them into investing, but Sonnenfeld makes some solid points about how that's not a viable strategy 
. I need some concrete data before I start investing my money in Venezuela 
.
. And even if we did invest in Venezuela, what makes him think production would pick up unless there are guarantees?