President Trump, Vice-President JD Vance and Secretary of State Marco Rubio participate in a roundtable discussion with major oil and gas executives on the issue of energy investment in Venezuela.
The primary concern for oil executives is stability within Venezuela. The Maduro government previously seized the assets of U.S. oil companies, and the investment required to restart the industry at scale are significant.
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This was quite interesting to watch and listen to. These guys push a lot of money through their companies and by and large sounded ready to go back into Venezuela and gear up their businesses again. Going to take some time though to get it going again.
Time to get those oil mules pumping beverly crude again.
What about the impact to US oil producers?
Flooding the market with Venezuelan oil could lower crude prices below the level that US extracters need to break even, while replacing US sour crude for US refineries.
Another machination with superficial benefit that actually adds to things undermining the US?
It is a catch-22. But I think at least on the large, yes, ickky word, multi-national level, the producers/extractors for domestic oil are the same as those at this meeting. I don’t know how many independent wild catters there are still……akin to that independent farmer trying to put his 10-100 acres of produce on the market.
Sure, I guess there are people who may lease their land for oil derrick to the big guys who may get less money on their rent, but hopefully the domestic producers and these producers are the same.
And as a personal anecdotal experience. I had a friend in college…….40 years ago, whose family had one of those derricks on their land. At the time, I think they got a nice rent per month, but did not have any of their own money in the venture. I think she said sometimes it would stop if prices were too low. But the company kept it maintained/”mothballed” it until needed again.
I guess the costs of infrastructure (with US……probably appropriate regulations) are such, and oil much deeper, the days of 5 well independent guys from 80-100 years ago are history.
Fracking drove the US oil production resurgence. How much US fracking is small entities vs. Big Oil Companies?
Clarification on sour vs. sweet crude:
US refineries were largely built for imported sour crude, although this can be changed at considerable costs including time.
On the other hand, US fracking mostly produces sweet crude, exported for refining.
The Venezuela oil is said to be sour crude, suitable for US refineries.
So the potential shift for the US realized by tapping Venezuela crude is shifting US refinery feed to Venezuela crude, with negative impact to US frackers by falling oil prices.
Seems to me “fracking” is a marginal technology, only viable at a certain price level. Compare to Permian Basin, Alberta, and North Slope production.
I am one of those small guys. The check has dropped 65%. Not pleasant. I have gas and sweet crude. Mothballs come and go bringing nice tears and sad ones. By the way, it takes 80 dollar oil to break even on a new frack well.
Sour vs. sweet is the point. Different grades for different purposes.
sour is great for diesel, asphalt and fuel oils.
sweet is great for gasoline.
we have unused sour refining capacity. This will NOT hurt shale by any stretch.
if Iran goes down, China is in a world of hurt.
I didn’t have VZ & Iran going down on my January bingo card.
Canada is the one it could potentially hurt, as they are the major source to the United States of sour crude (the type Venezuela has).
Of note, current US refineries are operating close to full capacity and have been all year.
https://www.eia.gov/dnav/pet/pet_pnp_unc_dcu_nus_m.htm
Boo hoo for US Producers and Distributors.
They have played their game of flexing US Prices at the fuel pumps for the past year in defiance of President Trump deregulating energy related sectors .. swinging prices by 50-75 cents per gallon (UP and then Down…repeat) in way that contributes to the resistance vs President Trump’s efforts to improve “affordability”.
If it takes IMPORTING cheaper fuel to make these cretins cooperate … so be it.
These days I don’t think the link between upstream (exploration and production) and downstream (refining and marketing) is as tight as you imply.
Don’t think “flooding the market” with Venezuela crude is going to happen any time soon, maybe forever. You also need to consider the market for crude vs the market for product. In the US the “majors” have off-loaded much of the refining capacity.
Sorry but I’m not particularly worried about Venezuela or Iran right now. My concern is America and the rise in assaults on our agents trying to clean up the crapped on us by previous administrations. At this point the house that concerns me is our own.
Taming Venezuela and Iran turns off an enormous money spigot to the leftists in America and worldwide. This is what you are seeing with these violent protests.
I can agree with you but I still think not enough is being done here.
The “justice” system and Congress and guys like Frey are the opposition.
After bingeing Landman I’m rested and ready to help.
Oh No!
Venezuelan Oil is going to “kill the planet”!
/sarc
This was a amazing meeting. The masters of the world were assembled together in this one room. Just listening to them made me realize how completely irrelevant the Dimmy party is, along with its DEI crap – all nothing but white noise. And but for one female oil exec….they’re all…. white men. Hahahaha. (That US Rep from WA freak, Emily Randall, hopefully watched it – if anyone saw her absolutely crazy, unbalanced, cringe statements during the House Oversight Committee meeting on MN fraud, you’ll know what I’m referring to.)
Gateway Pundit has the deranged tirade. Its so cringe, its almost hilarious yet a pathetic reflection on the voters of state of WA:
https://www.thegatewaypundit.com/2026/01/democrat-congresswoman-launches-outrageous-smear-against-white-men/
You also have Patty (Miss Piggy) Murphy…senator from the State of Washington….EQUALLY repulsive seditious and feckless.
Think PDJT missed a golden opportunity in response to one of the first questions by the press.
When the comment by the little Ukrainian cretin was made about “PDJT knowing what to do next” and the reporter framed it as “taking out Putin” – he should have answered with, “How ironic of little boy Z to say that, as the probability of taking out another dictator is highest in Ukraine than it is anywhere else in the world” – and then gone on to the next reporter.
Why was Tucker Carlson at this meeting?