Trump's strike on Venezuela gives the U.S. 30% of the world's oil reserves on paper and a $100 billion rebuilding job in reality | Fortune

"Over the weekend, U.S. forces arrested Venezuelan President Nicolas Maduro on drug trafficking charges, with Trump claiming the U.S. would "run" the country and take over the country's nationalized oil reserves. "American dominance in the western hemisphere will never be questioned again. Won't happen," Trump said on Saturday, while explicitly endorsing the "Donroe doctrine," a social media meme/portmanteau that describes the retro-nostalgic version of imperial authority increasingly on display in his second term. The Monroe Doctrine meets the Donald."

"Home to the world's largest oil reserves, Venezuela reached its output peak in the 1970s, producing more than 3.5 million barrels of oil daily, though production has significantly tapered off to about 1 million barrels daily. Analysts have high hopes that oil companies entering Venezuela can tap back into the country's black gold. JPMorgan predicted that with control of Venezuela's oil, the U.S. could hold 30% of the world's oil reserves. Other analysts said the country could double or triple its current output, returning it to its highs from 50 years ago, quite quickly."

"But experts warn that the path to dominance, at least as far as oil is concerned, will be an uphill battle following decades of mismanagement and sanctions. State-owned oil giant Petróleos de Venezuela S.A. (PDVSA) collapsed in the mid-2010s following the loss of foreign financial support, as well as skilled workers to maintain pipelines."

U.S. forces arrested Venezuelan President Nicolas Maduro on drug trafficking charges and Trump claimed the U.S. would run the country and take control of nationalized oil reserves. Trump explicitly endorsed a retro-styled "Donroe doctrine" invoking renewed hemispheric dominance. Deadly strikes on Venezuelan boats allegedly carrying drugs have drawn criticism and a United Nations warning that Maduro's ouster violated the UN charter. Venezuela holds the world's largest oil reserves but production has fallen from over 3.5 million barrels per day in the 1970s to about 1 million today. Analysts foresee rapid output recovery under foreign companies, but decades of mismanagement, sanctions and the collapse of PDVSA have left infrastructure and skilled workers depleted.

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