Trump’s Venezuela and UNFCCC moves reshape U.S. energy incentives

Time reports that this year began with the capture of Nicolas Maduro in Venezuela, followed by President Trump’s commitment to “run” the country and rejuvenate its oil industry, and by a presidential memorandum to withdraw the U.S. from the United Nations climate body (UNFCCC). The article argues these actions signal a new U.S.

energy and climate paradigm. The piece cites Rystad Energy analysis estimating that about $180 billion of investment could allow Venezuela to plausibly pump 3 million barrels per day by 2040, which would rank it among the world’s top five producers. More supply, the article says, would help keep prices low, reduce vulnerability to OPEC and align with Trump’s long-stated preference for roughly $50 per barrel (the U.S.

benchmark is currently just under $60). It warns that cheaper oil weakens the business case for electrification and could durably tilt U.S. incentives against clean technology. The article also stresses uncertainties: aligning politics, capital and logistics to rebuild Venezuela’s industry is a long shot, low prices could harm U.S.

Key Topics

Politics, Donald Trump, Nicolas Maduro, Venezuela, Unfccc, Rystad Energy