Following the decision by the United States to remove Venezuelan leader Nicolas Maduro, who has governed the country for the past decade, U.S. President Donald Trump is now urging American oil companies to return to Venezuela’s productive oilfields.

However, American oil executives may be reluctant to comply. The oil and gas industry today is vastly different from how it was during Venezuela’s peak production years in decades past. Approximately 30 years ago, this region was a leading force in global oil and gas production, yielding 3.5 million barrels per day of heavy sour crude from the Orinoco Oil Belt, home to the largest heavy oil reserves in the world.

Currently, capital discipline is paramount. Financial decisions are now primarily driven by Wall Street rather than private investors and independent oilmen, fundamentally altering the industry’s dynamics. And those risk-averse stakeholders are wary of investing in operations where security may be uncertain and political instability seems likely for months, if not years, to come.

Exxon CEO Darren Woods released a public statement that........

© Forbes