Trump's bid for Venezuelan oil meets corporate reluctance and market realities

President Trump has pushed to take control of Venezuelan oil as part of a White House drive for “energy dominance,” hosting oil executives and declaring “We are open for business” after the U.S. operation that seized Venezuela’s leader, Nicolás Maduro, on Jan. 3, the Times reported.

Administration officials and outside analysts say effective control of Venezuela’s exports could give the United States additional leverage in global oil markets, reduce the influence of Middle Eastern producers and make big consumers such as China more dependent on the United States.

The head of Russia’s sovereign wealth fund, Kirill Dmitriev, said Washington could have “huge market leverage,” and Tong Zhao of the Carnegie Endowment said Beijing was concerned about expanding U.S. influence in Latin America. But the plan has run into practical limits: major American oil companies have been hesitant to invest, with Exxon Mobil telling Mr.

Trump that Venezuela was “uninvestable” and not committing to major spending. Mr. Trump called Exxon “playing too cute” and said he might keep the company out. Analysts noted that the United States lacks a national oil company to carry out such a plan, Venezuela currently produces only about 1 percent of the world’s oil after years of sanctions and mismanagement, and increasing output would likely take years.

Key Topics

Politics, Donald Trump, Venezuela, Nicolas Maduro, Venezuelan Oil, Exxon Mobil