U.S. move to take control of Venezuelan oil unlikely to lower gas prices soon

"Hours after a nighttime raid removed Venezuelan President Nicolas Maduro from his compound, President Trump announced that the United States would oversee the country and assume control of its oil resources. "We're going to have our very large United States oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country," Trump said."

"Venezuela is believed to hold more than 300 billion barrels of oil, but the country currently produces only a small fraction of its potential. As of 2023, its largest oil customer was China, followed by the United States and Spain. Patrick De Haan of GasBuddy.com, who has tracked the oil industry for decades, said the situation in Venezuela is unlikely to translate into lower gas prices for U.S. drivers anytime soon."

"De Haan noted that Venezuela's infrastructure has suffered from years of underinvestment, which was worsened by U.S. sanctions. "We're talking about a massive lack of investment, part of that because of U.S. sanctions, which have made it virtually impossible for Venezuela to maintain its oil infrastructure," he said. Rebuilding that system would require billions of dollars from oil companies, many of which previously had assets seized under former President Hugo Chavez. De Haan said investors may hesitate without clarity about who will govern th"

U.S. forces removed Venezuelan President Nicolas Maduro and the United States announced oversight of Venezuela and its oil resources, with plans for major U.S. oil companies to invest. Venezuela holds over 300 billion barrels of oil but currently produces only a small fraction of its potential, with China, the United States and Spain among top customers. Analysts warn that any increase in production will take a long time because infrastructure suffered years of underinvestment and was worsened by U.S. sanctions. Rebuilding requires billions of dollars and investor willingness, which depends on clarity about future governance.

Read at 6abc Philadelphia