President Donald Trump addressed the nation about the US capture of Venezuelan President Nicolás Maduro and his wife.
Following the dramatic imprisonment of Venezuelan President Nicolás Maduro, the US is now in a position to exert significant influence over the future of the world’s largest oil reserves.
Venezuela, a country almost twice the size of California, has extraordinary wealth.
At over 300 billion barrels Venezuela has larger proven oil reserves than established energy heavyweights such as Saudi Arabia, Iran and Kuwait.
The Latin American country is home to an estimated 300 billion barrels – roughly 20% of global supply and almost fourfold what the US has.
However, much of that oil is difficult and expensive to produce.
Venezuela’s reserves are dominated by heavy and extra-heavy crude oil that requires specialized equipment, constant maintenance and advanced refining capacity, much of which has deteriorated after years of underinvestment, US sanctions and political instability.
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An exterior view of the El Palito refinery in Puerto Cabello, Venezuela, a facility owned and operated by the country’s state oil company. (Jesus Vargas/Getty Images/Getty Images)
Similar dynamics have unfolded in countries such as Iran and Libya, where unrest, financial problems and crumbling infrastructure have locked large reserves underground.
This weekend, Chairman Donald Trump said he would seek to revive the once-prominent commodity by mobilizing investment from major U.S. energy companies.
“We will have our very large oil companies in the United States step in, spend billions of dollars, fix the badly broken oil infrastructure and start making money for the country,” Trump said during a news conference at Mar-a-Lago.
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U.S. energy companies have yet to say whether they plan to return Venezuela to revive an oil industry hollowed out by years of neglect.
“Chevron remains focused on the safety and well-being of our employees, as well as the integrity of our assets,” a Chevron spokesperson added.
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“It would be premature to speculate on future business activities or investments,” a ConocoPhillips spokesperson added.
ExxonMobil, the largest U.S. oil company, did not immediately respond to a request for comment.
