Donald Trump has asked for at least $100bn (£75bn) in oil industry spending for Venezuela, but received a lukewarm response at the White House as one executive warned the South American country was currently “uninvestable”.
Bosses of the biggest US oil firms who attended the meeting acknowledged that Venezuela, sitting on vast energy reserves, represented an enticing opportunity.
But they said significant changes would be needed to make the region an attractive investment. No major financial commitments were immediately forthcoming.
When you account for inflation, oil prices today are in line with oil prices in the early 2000s. The price is too low, and the risk is too high for massive infrastructure spending that would extract more oil from Venezuela to be worth it.
Possibly, green energy technologies are now on a trajectory to overtake fossil fuels altogether - and they are already a factor in driving the price of fossil fuels (and therefore the profitability of many wells and mines) down substantially. If that happens, the long term value of Venezuela’s oil reserves, without suitable infrastructure already built for extraction, could be close to zero.
In line with small government ideals, the best thing to do is let companies decide whether and how much to invest, but that won’t be a headline worth showing off. So Trump is trying to make $100B happen, and believes that that (alone) will restore the Venezuelan economy to the way it was.
Trump doesn’t give a rat’s ass about restoring the Venezuelan economy. He’s an extortionist and a robber, not a caring person.