US Considers Subsidies for Venezuela Oil, Despite 'No War' Claim | Quick Digest

US Considers Subsidies for Venezuela Oil, Despite 'No War' Claim | Quick Digest
President Donald Trump stated the US is not at war with Venezuela despite a recent military operation to capture Nicolás Maduro. He proposed US oil companies rebuild Venezuela's energy infrastructure, hinting at potential government subsidies or reimbursements, though this faces congressional opposition and industry skepticism.

US President Donald Trump denies being at war with Venezuela.

US-led military operation led to the capture of Nicolás Maduro.

Trump proposed US oil companies rebuild Venezuela's energy infrastructure.

Potential government subsidies or reimbursements for oil firms were suggested.

Congress plans legislation to block taxpayer subsidies for Venezuelan oil.

Oil executives express skepticism regarding rapid, large-scale investment.

US President Donald Trump has publicly declared that the United States is not at war with Venezuela, a statement made following a recent US-led military operation that resulted in the capture of Venezuelan President Nicolás Maduro. This assertion of 'no war' has been met with contention, as some lawmakers, including Senator Rand Paul, have argued that such an operation constitutes an act of war, given the bombing of a capital and removal of a foreign leader. Trump also proposed that US oil companies could play a pivotal role in rebuilding Venezuela's dilapidated energy infrastructure, suggesting the work could be completed in under 18 months. Initially, he hinted at the possibility of government subsidies or reimbursements for these companies to undertake the substantial investment required. However, this prospect has sparked significant opposition, with Representative Mike Levin announcing plans to introduce legislation to prevent American taxpayer dollars from being used to fund such ventures. Advocacy groups like Public Citizen have also raised alarms about potential taxpayer-backed guarantees for 'Big Oil.' Despite Trump's optimistic outlook and claims that oil companies would invest at least $100 billion, oil industry executives have expressed significant skepticism. ExxonMobil CEO Darren Woods, for instance, described Venezuela as 'uninvestable' without fundamental changes to its legal and commercial frameworks, citing past expropriations of assets. Experts corroborate this view, highlighting that rebuilding Venezuela's oil industry would require massive capital, potentially over $100 billion and more than a decade, due to years of underinvestment, political instability, and severely damaged infrastructure. The immediate focus, as suggested by Trump, includes routing sanctioned Venezuelan oil to the US market.
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