Without Institutional Change, Venezuela’s Oil Bonanza Remains Unviable
By
Francisco Monaldi
Sanctions relief, a democratic transition, and deep reforms are essential to recover production.
When President Trump announced the capture of Venezuela’s autocrat, Nicolás Maduro, and suggested that American oil giants would swoop in to fix the country’s battered oil infrastructure, it sounded like a straightforward business proposition. After all, Venezuela boasts some of the world’s largest oil reserves, and U.S. refiners are uniquely equipped to process its heavy crude. Moreover, the United States can sell Venezuela the condensates and refined products that it needs to blend with the extra-heavy oil. The economic logic is compelling:...
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