Oil Companies Do Not Want to Invest in Venezuela Again?

Today we learn that our dimwitted despot has not entirely thought through his little oil grab in South America. The administration is seeking $100 billion in investment from them to fix up Venezuela’s infrastructure and the execs were nonplussed, according to the New York Times.

Mr. Lance said ConocoPhillips had left behind $12 billion in assets.

“Good write-off,” Mr. Trump said, smiling broadly.

“It’s already been written off,” Mr. Lance replied, somewhat tersely.

There have been three waves of interesting times for those seeking profits in Venezuelan oil adventures:

1. 1975-76: Nationalization under Perez - All foreign concessions were expropriated. Companies received some compensation, but lost all control. Creation of state oil company.

2. 2004-06: Under Hugo Chávez, operating agreements and associations were converted into state‑majority joint ventures.

3. 2007–10: Expropriations & seizures - Chávez ordered outright expropriation of companies that refused new terms.

   

Who wouldn’t be hesitant? Trump’s a lame duck and lies about everything. On top of it all, Congress has already voted “no” to further actions in Venezuela (CNBC story). No insurance against a fourth round of losses.

Meanwhile the EU and South America have formed a free trade zone of 700 million people as the US becomes more and more isolated, ruled by a felon.

So it’s on to Greenland before China or Russia plant a flag on it, I guess?

Madness.