According to media analysis reports, US President Trump is giving US energy companies an opportunity to revive Venezuela's huge and declining oil industry. But for them, I'm afraid this is poison that includes sugar coating. First, most of Venezuela's oil reserves are heavy and extra heavy crude oil, which must be mixed with diluents and upgraded to lighter crude oil before it can be extracted, transported, and processed. All of this increases production costs. According to estimates by consulting firm Wood Mackenzie, the average break-loss balance cost has exceeded $80 per barrel. Second, the high degree of uncertainty over the transition of power in Venezuela has made investment in Venezuela unattractive. However, arguing against Trump also poses risks for businesses, especially at a time when government intervention in the economy is deepening, and such risks may be huge. As a result, the US oil giant is likely to reluctantly agree to the White House's plan, at least part of it, such as an expression of willingness to explore business opportunities in Venezuela.

According to media analysis reports, US President Trump is giving US energy companies an opportunity to revive Venezuela's huge and declining oil industry. But for them, I'm afraid this is poison that includes sugar coating. First, most of Venezuela's oil reserves are heavy and extra heavy crude oil, which must be mixed with diluents and upgraded to lighter crude oil before it can be extracted, transported, and processed. All of this increases production costs. According to estimates by consulting firm Wood Mackenzie, the average break-loss balance cost has exceeded $80 per barrel. Second, the high degree of uncertainty over the transition of power in Venezuela has made investment in Venezuela unattractive. However, arguing against Trump also poses risks for businesses, especially at a time when government intervention in the economy is deepening, and such risks may be huge. As a result, the US oil giant is likely to reluctantly agree to the White House's plan, at least part of it, such as an expression of willingness to explore business opportunities in Venezuela.