US Takeover of Venezuelan Oil!

...with ease and a stroke of the pen, the U.S. administration has seized the world’s largest oil reserves... in Venezuela, securing guaranteed and assured long-term supplies of crude oil amid rising consumption and declining domestic production, and its reliance on external oil imports that may not be reliable in the long term.

This is where the value of Venezuelan oil, its geographical proximity, and the assurance of a friendly government close to the United States come into play. Venezuelan oil represents the required added value to ensure the continuous and unthreatened flow of energy, and to create the necessary climate for U.S. oil companies to enter Venezuela safely, without fear or hesitation.

This ensures the continued flow of Venezuelan oil, the development and modernization of oil fields, and guarantees the participation of U.S. oil companies in developing these fields. It also involves compelling or pressuring them, if necessary, to ensure the continued flow of Venezuelan oil to them, along with other external oil supplies.

U.S. oil consumption is rising while its reserves are declining, leading to increased dependence on foreign sources. Currently, the U.S. consumes approximately 21 million barrels of crude oil per day and produces about 14 million barrels daily. America imports around 7 million barrels from Canada, Mexico, Saudi Arabia, Brazil, and other countries, including Iraq, Colombia, and Nigeria.

The U.S. government has guarantees and commitments, particularly given the deterioration of Venezuela’s oil sector. Venezuela was one of the founding members of OPEC and produced the equivalent of approximately 3.8 billion barrels in the early 1970s. The decline is due to various reasons, including mismanagement, neglect of the industry, corruption, and constant changes in senior management within the oil sector. Additionally, more than 1,800 employees were dismissed following a workers’ strike, and they were replaced by personnel from outside the oil sector, which led to its destruction. Production has fallen from its peak to its current level of less than 1.5 billion barrels.

Venezuelan oil is very heavy and dense, with high sulfur content, making it expensive and difficult to refine. Its API gravity ranges between 5–15 degrees, compared to Kuwaiti oil at 31 or Nigerian oil (41), which is light. Venezuelan oil resembles asphalt or tar, which we use in road construction.

Major oil companies may hesitate to enter or risk participating in Venezuelan fields, also fearing potential legal challenges in Venezuelan courts. However, the pressure they currently face from the U.S. administration will compel them to take the risk of entering and ensuring financial returns on their investments.

There remains no other option but to agree, begin exploration and drilling, and realize financial benefits and returns under the protection and guarantee of the U.S. government, restoring Venezuela as a nation to its former status among major oil-producing countries, as it was in the past... Or will we face the unfortunate possibility of OPEC losing a founding member from the oil organization? This could be another regrettable outcome.