Trump Urges Oil Giants to Invest in Venezuela Amid Maduro Ouster | Quick Digest
Former President Donald Trump urged major oil companies to invest $100 billion in Venezuela's oil infrastructure following a military operation that led to Nicolás Maduro's capture. Executives expressed skepticism over the political instability and unviability of immediate investment.
Trump proposed $100 billion investment from US oil companies in Venezuela.
Proposal followed a US military operation leading to Nicolás Maduro's capture.
Oil executives expressed strong skepticism due to Venezuela's instability and legal frameworks.
US aims for long-term control over Venezuela's vast oil reserves and sales.
Experts warn of significant time and capital needed to revive Venezuela's oil sector.
Discrepancy exists regarding Trump's prior consultation with oil companies.
Following a recent military operation that resulted in the capture of Venezuelan President Nicolás Maduro, former U.S. President Donald Trump has actively encouraged major American oil companies to commit substantial investments in Venezuela's oil sector. Trump publicly pitched a plan for these companies to collectively spend at least $100 billion to revitalize the country's dilapidated energy infrastructure, aiming to increase oil production and lower global prices. He stated that American firms would deal directly with the US government, not Venezuela, in these operations.
However, the proposition was met with considerable skepticism from oil industry executives, including the CEO of ExxonMobil, who deemed Venezuela 'uninvestable' without significant changes to its commercial frameworks and legal system. Many companies highlighted previous losses due to nationalization under Hugo Chávez and expressed concerns about political instability and the long-term viability of such large-scale investments. Analysts indicated that restoring Venezuela's oil production to historical levels would require decades and investments potentially exceeding $100 billion, far more than Trump's optimistic 18-month timeline. There were also conflicting reports, with oil executives denying prior consultation with the Trump administration before Maduro's capture, despite Trump's claims of having spoken to them. The US administration has made clear its intention to control Venezuela's oil sales indefinitely, seizing tankers and planning to manage future production and revenue distribution.
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