President Donald Trump Just Paved the Way for a New Oil Boom in Venezuela, but Significant Risks Remain Before U.S. Oil Companies Can Drill

Following an operation that ousted Venezuela President Nicolás Maduro from office and brought him to the U.S. to face criminal charges, President Donald Trump has paved the way for a new oil boom in the South American country. Trump has already said that Venezuela will transport 30 million to 50 million barrels of sanctioned oil to the U.S., which will be sold at market prices. The Wall Street Journal also reported that the U.S. is rolling back some sanctions to make it legal for Venezuela to sell oil in global oil markets.Trump also plans to persuade U.S. oil companies to go into Venezuela, repair the country's antiquated oil infrastructure, and start doing business in a country believed to hold the world's largest reserve of crude oil, with roughly 300 billion barrels. However, significant risks remain before new U.S. oil companies can start drilling and increase production in the country.Despite having the largest global oil reserves, Venezuela's oil infrastructure is outdated, partly due to government mismanagement and partly because many oil companies left the country after Hugo Chávez essentially nationalized most of the country's oil assets in 2007. To ramp up production, significant upgrades are needed.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool