{"id":12853931,"date":"2026-01-13T17:34:33","date_gmt":"2026-01-13T22:34:33","guid":{"rendered":"https:\/\/www.philstockworld.com\/?p=12853931"},"modified":"2026-01-14T00:24:23","modified_gmt":"2026-01-14T05:24:23","slug":"why-unlocking-venezuelan-oil-wont-mean-much-for-us-energy-prices","status":"publish","type":"post","link":"https:\/\/www.philstockworld.com\/2026\/01\/13\/why-unlocking-venezuelan-oil-wont-mean-much-for-us-energy-prices\/","title":{"rendered":"Why unlocking Venezuelan oil won\u2019t mean much for US energy\u00a0prices"},"content":{"rendered":"

Why unlocking Venezuelan oil won\u2019t mean much for US energy prices<\/h2>\n
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By Amy Myers Jaffe<\/a>, New York University<\/a><\/em>; Tufts University<\/a><\/em><\/div>\n

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In the wake of U.S. forces\u2019 arrest of Venezuelan President Nicol\u00e1s Maduro<\/a>, U.S. President Donald Trump has said the U.S. is taking over Venezuelan oil production<\/a>.<\/em><\/p>\n

In addition, the U.S. has blockaded Venezuelan oil exports for a few weeks and seized tankers<\/a> that reportedly escaped from the blockade.<\/em><\/p>\n

To understand what\u2019s happening and what it means for U.S. consumers and the American energy industry, The Conversation U.S. checked in with Amy Myers Jaffe<\/a>, a research professor at New York University and senior fellow at Tufts University who studies global energy markets and the geopolitics of oil.<\/em><\/p>\n

What is the state of Venezuela\u2019s oil industry and how did it get to this point?<\/strong><\/p>\n

Venezuela\u2019s oil industry has experienced profound turmoil<\/a> over its history, including a steady downward spiral beginning in 1998. That\u2019s when a worldwide economic downturn took global oil prices below $10 per barrel at the same time as the Venezuelan public\u2019s growing interest in reasserting local control of the country\u2019s oil industry ushered in populist President Hugo Ch\u00e1vez.<\/p>\n

In April 2002, Venezuelans took to the streets<\/a> to protest the appointment of Ch\u00e1vez loyalists to replace the top brass<\/a> of the national oil company, Petr\u00f3leos de Venezuela. The chaos culminated in an attempted coup against Chavez, who managed to retake power in a matter of days. Petr\u00f3leos de Venezuela\u2019s workers then went out on strike, prompting Ch\u00e1vez to purge close to 20,000 top management<\/a> and oil workers. That began a brain drain that would last for years.<\/p>\n

In 2007, Ch\u00e1vez, standing in front of a banner that read \u201cFull Oil Sovereignty, The Road to Socialism<\/a>,\u201d took over ExxonMobil\u2019s and ConocoPhillips\u2019 oil-producing assets in Venezuela. The companies had declined to accept new oil contracts at radically less profitable terms than they had in previous years.<\/p>\n

After Ch\u00e1vez\u2019s death in 2013, national economic chaos accelerated. By 2018, reports began to surface that roving gangs, as well as some oil workers struggling to survive, were stripping the industry of its valuable materials<\/a> \u2013 computers, copper wiring, and metals and machinery \u2013 to sell on the black market.<\/p>\n

U.S. sanctions<\/a> added to the mix over the years, culminating in a drop in Venezuelan oil production to 840,000 barrels a day in 2025, down from the 3.5 million barrels a day it was able to produce in 1997.<\/p>\n