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.
This podcast episode explains very well Exxon’s logic: https://pca.st/episode/d7084179-677a-4c82-ac90-c53cf28110c4
I never thought I would be on an oil company’s side in a discussion in my life.
Here’s the podcast episode description:
When people think of oil rich nations their mind generally goes to Saudi Arabia, Iraq and the US.
But according to international statistics, the country with the largest oil reserves is Venezuela, with 300 billion barrels worth.
At their peak they produced over 3.5 million barrels of the stuff per day. However, due to lack of investment, sanctions and mismanagement that peak is long gone.
Following their military intervention, the US administration claims they can get Venezuela’s oil production up and running at full capacity within 18 months.
But can they, and why is it that estimates for other countries oil reserves have fluctuated but Venezuela’s has stayed at 300 billion barrels for over two decades?