The big obstacles to Trump's plan for a Venezuelan oil windfall

There’s a familiar ring to President Donald Trump’s plan to send U.S. energy giants to Venezuela to use the wealth generated from rekindling long-stalled oil production to stabilize that country and cement American energy dominance: Similar ambitions accompanied the U.S. invasion of Iraq in 2003.

The quick riches promised did not materialize there, as firms grappled with years of political turmoil and security threats, struggled to negotiate workable contract terms and confronted vexing infrastructure inadequacies. Venezuela may not be any easier, industry analysts warn.

“One of the clear lessons from Iraq - and it is not unique to Iraq - is that you need to have stability and be able to assess risk before you can start production,” said Kevin Book, managing director at ClearView Energy Partners, a research firm. Until then, he said, companies may not be enthusiastic about making the billions of dollars in investments required in Venezuela.

It’s unclear which firms Trump was referencing at a news conference Saturday morning, when he said: “We’re going to have our very large United States oil companies, the biggest anywhere in the world, go and spend billions of dollars to fix the badly broken infrastructure, the oil infrastructure.”

https://finance.yahoo.com/news/big-obstacles-trump-plan-venezuelan-000726376.html