"Industry experts have expressed skepticism over Donald Trump's bullish prediction that US big oil firms will rapidly invest tens of billions of dollars to fix Venezuelan infrastructure and ramp up production after the rendition of the country's president, Nicolas Maduro. Without an iron-clad guarantee that the US federal government will fully reimburse them for the cost of rebuilding the country's oil market, analysts expect global energy giants to proceed with extreme caution."
"The ambitious timeline laid out by Trump could prove unrealistic. It's probably going to take three years for any kind of production bounce, said Dan Pickering, chief investment officer at Pickering Energy Partners, who expects an increase of around half a million barrels per day (bpd) by 2029, maybe late 2028."
Donald Trump predicted US oil majors could quickly invest tens of billions to repair Venezuelan oil infrastructure and restart production within 18 months. Industry experts and analysts expressed skepticism, citing the lack of iron-clad US government reimbursement guarantees as a major deterrent to rapid corporate investment. Major US firms have not publicly committed to such plans and described speculation about future investments as premature. Analysts estimate a more realistic timeline of roughly three years for a production rebound, with modest increases by 2028–2029 as companies first sort contracts, then invest in reconstruction.
Read at www.theguardian.com
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