Donald Trump Betting on U.S. Oil Companies to Revive the Industry; Analysts Say It Won't Be Easy
Donald Trump He said he is counting on U.S. companies to rebuild Venezuela’s battered oil industry. But industry insiders say that although Venezuela has the world’s largest proven oil reserves, the risks may outweigh the rewards for U.S. oil giants.Extracting more crude oil from Venezuela requires rebuilding the country’s severely damaged oil infrastructure, which, according to Donald Trump, would cost tens of billions of dollars. At the same time, oil prices are not high enough to make such an investment an easy decision. Furthermore, refining Venezuela’s specific type of crude oil is itself a costly endeavor.Clayton Seigle, a senior fellow in the Energy Security and Climate Change Program at the Center for Strategic and International Studies, stated: “All of this raises more questions than answers about Venezuela’s future political landscape, and this will be the primary concern for corporate and industry planners seeking to assess potential opportunities there.”
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