""The potential to boost Venezuelan production hinges on capital, which in turn depends on political stability and likely requires guarantees from the US government," Jefferies Global Research & Strategy analysts said in a note on Sunday. U.S. companies "will be wary to enter without a stable security environment, and very favorable terms to reduce the risk. Especially with markets over supplied and prices low in the near term," Eurasia Group analyst Gregory Brew said via email."
"The intrigue: A lot of questions remain about how the U.S. could enable conditions ripe for billions of dollars in new investment, though Rubio broadly told CBS on Sunday that companies would need "certain guarantees and conditions." He said the U.S. "quarantine" on sanctioned oil tankers creates leverage for changes there. My thought bubble: This isn't the only case of Trump asking oil companies to move out of their comfort zone in pursuit of big rewards - with big risks."
U.S. policymakers aim to shift control of Venezuela's vast oil reserves toward arrangements that benefit the country's people and reduce adversary influence. Administration leaders argue that restoring Venezuelan oil flows would lower global prices and benefit the United States. Analysts warn that reviving production requires substantial capital, political stability, and likely government-backed guarantees to de-risk investments. Energy companies are unlikely to commit without secure conditions and highly favorable terms, especially while markets remain oversupplied and prices low. Officials point to measures such as sanction enforcement on tankers as leverage to create investment conditions.
Read at Axios
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