Fossil Fuel Capitalism Is Already Profiting From Trump's Attack on Venezuela |
Is the illegal US invasion of Venezuela, and kidnapping of its president, a “war for oil”?
To some extent, this is a reductionist debate. There are often multiple motivations for war, and there clearly are several here. Some in the administration are stuck in Cold War ideology and will use any pretext to undermine and even overthrow governments they perceive as left-leaning, as seen from President Donald Trump’s threats against Colombia, Cuba, and Mexico.
Beyond those governments, the latest Trump National Security Strategy proclaims a desire to “reassert and enforce the Monroe Doctrine to restore American preeminence in the Western Hemisphere.”
Still, it’s hard to ignore the role of oil. Venezuela likely has the world’s largest proven oil reserves, and Trump has repeatedly declared his intention to seize Venezuela’s oil, partly for the benefit of the United States and US oil companies.
We may eventually see US oil companies grab some of the largest oil reserves in the world, with huge direct public subsidies in the form of investment reimbursements, and indirect subsidies in the form of the US military acting as their free private security force.
There are reasonable doubts about whether US oil companies would be willing to invest in Venezuela. The poor state of the country’s oil infrastructure would necessitate major investments to upgrade it. It’s estimated to cost $110 billion to restore production to mid-2010s levels, and there’s a high likelihood of political instability in the country over the next few years.
Reportedly, many US oil companies are reluctant to invest in Venezuela despite pressure from the US government. Either way, the web of business interests that benefit, directly or indirectly, from the oil and gas industry still stand to come out ahead—and in some ways are already benefiting—from Trump’s aggression.
Stock prices for US refiners (such as Chevron and Valero Energy) and oilfield services companies (such as