U.S. Eyes Venezuela’s Energy Reserves As China And Russia Lose Ground
After President Donald Trump removed Venezuelan socialist dictator Nicolás Maduro, the U.S. has emerged as the “master of the hemisphere” and is positioned to leverage the Latin American nation’s resources to outpace China, Russia, and Canada in the coming years, energy sector experts told the Daily Caller News Foundation. [some emphasis, links added]
American energy companies essentially built and led innovation within the Venezuelan oil industry from the 1900s until the early 21st century, when former socialist dictator Hugo Chávez nationalized the industry.
Chevron is now the only major U.S. company operating in Venezuela, and Trump’s move to “run” or otherwise influence the country creates new opportunities for oil development — a shift that some energy experts told the DCNF will shift geopolitics into Washington’s grip.
“The writing is on the wall. The U.S. is firmly in the driver’s seat,” The Heritage Foundation’s Chief Economist EJ Antoni told the DCNF, acknowledging that it will take time to revitalize the oil industry in Venezuela and pivot from Canadian oil imports.
“Venezuela is being taken out of the Chinese orbit and from the Russian orbit and into that of the United States. … By boosting American strategic interests… you’ve simultaneously reduced Russian and Chinese strategic interests.”
Despite sitting on the world’s largest oil reserves, about 50% of Venezuelans live in extreme poverty.
The administration and economists like Antoni note that a revitalized Venezuelan oil industry partnered with the U.S. could lead to a mutually beneficial relationship.
Russia and China have collaborated and long sought influence in Venezuela, with an energy giant owned by the Russian state operating as a key partner in Venezuelan oil production, particularly after U.S. sanctions limited other buyers.
The bulk of Venezuelan oil exports flowed to China in recent years.
In addition to vast petroleum and natural gas reserves, Venezuela sits on significant deposits of iron ore, bauxite, gold, diamonds, and other rare earth minerals.
Venezuela also hosts notable resources, and currently, Canada is the top supplier to the U.S. for forest products and lumber.
Canada’s exports to the U.S. have served as a large source of leverage in trade negotiations with America, Antoni told the DCNF.
“Now that that leverage is gone. It’s not gone overnight, but the writing is on the wall,” he said, adding that Venezuelan crude — like Canadian — is heavy and American refineries in Texas are built to process it.
Importing oil from Venezuela via the Atlantic and Caribbean could be more cost-effective, particularly if the U.S. secures a discount, Antoni said.
The U.S. is “at this point, master of its own destiny and master of the hemisphere. And the Canadian government has to know that,” Antoni said.
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