Trump's Venezuela Oil Plan Faces Hurdles: Billions Needed, Political Risks
World
M
Moneycontrol•04-01-2026, 17:55
Trump's Venezuela Oil Plan Faces Hurdles: Billions Needed, Political Risks
- •Trump's plan aims to seize and revitalize Venezuela's oil industry with US companies, but immediate oil price impact is unlikely.
- •Venezuela holds the world's largest proven crude oil reserves (303 billion barrels), making it attractive for international companies.
- •Revitalizing the industry from 1.1M to 4M bpd would require a decade and $100 billion investment due to years of neglect and sanctions.
- •Political instability, contract reliability, and past nationalizations (Chavez in 2007) are major concerns for potential US investors.
- •Increased Venezuelan heavy crude production could alleviate global diesel shortages, benefit US refineries, and pressure Russia.
Why It Matters: Trump's ambitious plan for Venezuela's oil faces significant investment, political, and legal challenges.
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