In comments today, President Donald Trump says the sanctions on Venezuelan oil remain in place, but he also said that the U.S. intends to be “very involved” in Venezuela’s oil sector, which he says requires billions of dollars fix the “badly broken” oil infrastructure.

The administration frames this as a reclamation project, suggesting companies will be ‘reimbursed’ through direct access to the crude.

Long Term Losers: Heavy Canadian Crude Producers

Venezuela’s long absence from Western markets helped entrench Canadian heavy crude as the dominant supplier to U.S. refineries configured for heavy barrels. Canada currently exports about 3.3 million barrels a day of crude to the U.S., and Canadian oil accounts for roughly a quarter of U.S. refinery throughput. Much of that volume is heavy oil sands crude flowing primarily to the U.S. Midwest and Gulf Coast, where refineries were originally built to process Venezuelan and Mexican heavy grades.

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[–] humanspiral@lemmy.ca 2 points 2 months ago* (last edited 2 months ago)

Obviously the first view of coup/colonization is from nationalist oligarchy perspective. Those who give Trump kickbacks will get free assets and resources, and can gain even if oil prices fall. Controlling more than the US needs has always been a strategic gain, and you shouldn't understand the failure of developing Iraq and Libya as failures, but the goal all along. Ensuring China didn't help develop Venezuela is a strategic win.

Industry whining against more oil supply will be listened to if they keep paying to be listened to. Most likely outcome will be stealing resources without investment, and that is minimal additional supply. Health of Alberta industry will not be a concern.

Long term, if Venezuala is US's BFF, it drastically reduces the economic viability of any other oil project. There is a global establishment, including North American oil oligarchy, but also everyone inside Venezuela not being bribed to be the US's BFF, who would sabotage this.

Analysis of this subject: https://www.youtube.com/watch?v=hxZmlUXSAEs