"President Donald Trump says American Big Oil "want to go in so badly" into Venezuela and spend billions of dollars, but the reality is U.S. oil producers are hesitant, and it will take many years and many tens of billions of dollars to rebuild Venezuela's decimated oil sector after the U.S forcibly removed and arrested leader Nicolás Maduro during a string of attacks on Jan. 3."
"More than doubling Venezuela's current oil production likely would take until 2030 and cost about $110 billion, said research firm Rystad Energy, arguing that bringing Venezuela-home to the world's largest known oil reserves-back to its previous highs would take even longer. Venezuela's current oil flows of roughly 900,000 barrels daily are about one-third of its volumes at the turn of the century thanks to mismanagement, labor strikes, sanctions, and financial woes."
U.S. oil producers are hesitant to invest in Venezuela despite assertions that American Big Oil wants to enter and spend billions. Rebuilding the decimated oil sector after the U.S. forcibly removed and arrested leader Nicolás Maduro during a string of attacks on Jan. 3 will take many years and cost many tens of billions of dollars. Rystad Energy estimates more than doubling current production would require until 2030 and about $110 billion, with returning to previous highs requiring longer. Current flows are roughly 900,000 barrels per day, about one-third of earlier volumes, due to mismanagement, strikes, sanctions, and financial problems. Low global oil prices and the need for political and operational certainty further deter major companies from deploying capital.
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