Oil Giants Unlikely to Rush into Venezuela's Promise
US President Donald Trump sees big opportunities in Venezuela's oil reserves. But experts say a huge part of his enthusiasm is misplaced.
The promise of cheap oil, which has always been Trump's holy grail, seems like an easy fix for the US economy. With oil prices at their lowest since 2021 and gasoline prices plummeting, it may seem like the perfect solution to his economic woes. However, experts point out that this is a false narrative.
The US already produces a significant amount of its own oil, thanks to advancements in fracking technology from shale deposits. In fact, the country now produces three times as much GDP per unit of energy consumed compared to just 20 years ago. This shift has led to a decrease in reliance on foreign oil.
Moreover, even if there was an abundance of cheap oil to tap into, the complexities of extracting it from Venezuela would be insurmountable. The infrastructure is decrepit, and production levels have been meager for years - only about 1% of global production last year.
Furthermore, any investment in Venezuela's oil industry would come with significant risks. Contracts are unlikely to be honored once a new government takes over, and facilities could potentially be bombed before they even become operational. ExxonMobil CEO Darren Woods has already stated that the situation is "uninvestable".
The economic case for Venezuela's oil is also weak. The US economy has become increasingly less dependent on it since the mid-1970s, when high oil prices had a much greater impact on the country's growth. Industry efficiency has improved, and energy plays a smaller role in the mix.
In fact, history shows that meddling in another country's business to secure access to oil is not an effective strategy. The US has long history of intervening in other countries' affairs to gain control over their oil resources - from Iran to Iraq, and even Russia today.
It seems Trump's enthusiasm for Venezuela's oil may be based on a childlike dream of striking gold beneath the soil. However, experts warn that it is likely safer and cheaper for US companies to procure whatever oil the US economy needs at home, rather than trying to extract it from a country plagued by turmoil and inefficiency.
US President Donald Trump sees big opportunities in Venezuela's oil reserves. But experts say a huge part of his enthusiasm is misplaced.
The promise of cheap oil, which has always been Trump's holy grail, seems like an easy fix for the US economy. With oil prices at their lowest since 2021 and gasoline prices plummeting, it may seem like the perfect solution to his economic woes. However, experts point out that this is a false narrative.
The US already produces a significant amount of its own oil, thanks to advancements in fracking technology from shale deposits. In fact, the country now produces three times as much GDP per unit of energy consumed compared to just 20 years ago. This shift has led to a decrease in reliance on foreign oil.
Moreover, even if there was an abundance of cheap oil to tap into, the complexities of extracting it from Venezuela would be insurmountable. The infrastructure is decrepit, and production levels have been meager for years - only about 1% of global production last year.
Furthermore, any investment in Venezuela's oil industry would come with significant risks. Contracts are unlikely to be honored once a new government takes over, and facilities could potentially be bombed before they even become operational. ExxonMobil CEO Darren Woods has already stated that the situation is "uninvestable".
The economic case for Venezuela's oil is also weak. The US economy has become increasingly less dependent on it since the mid-1970s, when high oil prices had a much greater impact on the country's growth. Industry efficiency has improved, and energy plays a smaller role in the mix.
In fact, history shows that meddling in another country's business to secure access to oil is not an effective strategy. The US has long history of intervening in other countries' affairs to gain control over their oil resources - from Iran to Iraq, and even Russia today.
It seems Trump's enthusiasm for Venezuela's oil may be based on a childlike dream of striking gold beneath the soil. However, experts warn that it is likely safer and cheaper for US companies to procure whatever oil the US economy needs at home, rather than trying to extract it from a country plagued by turmoil and inefficiency.
anyway... yeah i think trump's gonna be super disappointed with venezuela's oil situation lol. i mean come on, 1% of global production? that's like saying your new sports car is gonna get you where you wanna go if the highway's closed for a construction project 
or when the next big crisis hits? 
. why bother with venezuela's troubles when you can just make some oil at home? 
. Experts are right on this one, dude. The US is already killing it with fracking and whatnot, we don't need to go chasing after Venezuelan oil. And let's be real, the situation there is sketchy at best... I mean, who wants to invest in a country where infrastructure is toast and production levels are basically non-existent? 
It's like throwing money out the window, bro.
Let's just focus on extracting what we need from our own soil and leave the rest alone, you know? It's all about being smart with our resources, not reckless and impulsive like Trump...
and even if it wasn't, wouldn't wanna risk gettin bombed by venezuelans or whatever new government comin in 
. It's not like they can just magic up some reliable oil production overnight. Not to mention the risks involved... it's like playing a game of geopolitical Jenga 
.
. I mean, remember Iraq? And Iran? Yeah, no thanks. Let's just focus on our own backyard energy gameplan and leave Venezuela's drama for them to deal with 
. It's time to move on from this pipe dream, in my humble opinion 
... all that history of messing up those Middle Eastern oil deals doesn't exactly fill me with confidence 
...
newsflash: it's not that easy! US already has fracking tech on lock and our own oil production is through the roof 
anyone who thinks they can just pour in cash and get cheap oil out of there is sadly misinformed 
i mean yes oil prices are low, but it's not like trump doesn't have other problems to solve 
but it looks like he is! Anyway, back to my point – even if they did find a ton of cheap oil in Venezuela, don't you think our own fracking technology has made us pretty self-sufficient already? 
And have you seen the state of their infrastructure? It's like a nightmare! 
.
but experts say its not that easy... 
and we dont need to rely on venezuela as much anymore. plus extraction is super hard due to infrastructure and production levels are really low there. 
also, what if the new government cancels contracts or facilities get bombed? 
thats just too many risks. and honestly, us economy has been doing fine without venezuela's oil for decades so why fix what aint broke? 
. experts are saying no way, the US is all good on its own oil game with fracking and shale tech 
. plus, production levels are like 1% of global output last year 
.
. The US is already doing pretty well with its own oil production, so why take the risk? It's like they say: "don't put all your eggs in one basket" 
. We need to diversify and not get too attached to a single source of energy or wealth 
.
, which has significantly reduced our reliance on foreign oil. Plus, extracting oil from Venezuela would be a monumental task due to the country's poor infrastructure and low production levels 
.
. History has shown that meddling in another country's business to secure access to oil is a flawed strategy 
. It's probably wiser for US companies to stick with a reliable, homegrown solution 
.