President Donald Trump vowed back in January that his administration’s takeover of Venezuela would “benefit” Americans, and yet, just over six months later, that promise appears to be imploding after key players have reportedly gotten cold feet, The Washington Post reported Sunday.
In the immediate aftermath of the unprecedented U.S. attack on Venezuela earlier this year, the Trump administration took control of the nation’s oil revenue, which Trump claimed at the time would be “used to benefit the people of Venezuela and the United States.” The Trump administration had hoped U.S. companies would invest $100 billion into the South American nation’s energy infrastructure.
“But businesses don’t want to spend big on capital-intensive projects to extract heavy crude, which take decades to pay off, if there’s a high chance the government will backslide,” the Post’s report reads.
“ConocoPhillips CEO Ryan Lance said recently that Venezuela has ‘a lot more work to do on their side of the equation.’ He said the overhaul of the hydrocarbon law was insufficient ‘to attract a whole lot of investment’ because it could amount to a ‘95 percent government take.’ Chevron CEO Mike Wirth has expressed similar sentiments.”
The Trump administration was recently in hot water over its handling of Venezuela’s oil revenue. Rep. Sydney Kamlager-Dove (D-CA) pressed Secretary of State Marco Rubio last week during a congressional hearing on whether the administration was concealing lucrative private contracts related to Venezuela’s oil.
“The Venezuelan government’s illegitimacy raises the risk of investing capital,” the Post’s report reads. “Once real elections are held, U.S. companies will gain a clearer sense of whether it’s worth pouring in money.”