This intervention comes at a pivotal moment for the global oil industry, which continues to stare down the prospect of a broad transition to renewable energy. For this reason, it’s not obvious that future markets can justify a surge of investment in Venezuela.
On one hand, the country’s extra-heavy crude oil is perfect for diesel and jet fuel, which are helpful in hard-to-decarbonize industries. This makes it less threatened by the meteoric rise of electric vehicles displacing gasoline-powered cars.
On the other hand, the world is already experiencing an overall glut of oil, and analysts expect demand to peak in the next decade. While there are buyers for additional oil that could be pumped in Venezuela — some of them on the U.S. Gulf Coast — experts say a total revival on the order that Trump is promising may not be in the cards.
If peak oil demand continues:
Your future was yesterday, orange man.
On a more serious note: Markets are treacherous. Renewable energy needs to cement a stronger foothold for exponential expansion to withstand negative fossil price shocks (flooded markets).
On a more serious note: Markets are treacherous. Renewable energy needs to cement a stronger foothold for exponential expansion to withstand negative fossil price shocks (flooded markets).
That is a situation were carbon prices are a really good idea.
They also have to content with the possibility that they lose their investment after Trump is out of office. Or possibly after the midterms if Democrats win enough in both houses and actually curtail his war powers. I’m not naive enough to think that companies who participate in this theft will ever actually be punished but there legitimately is a possibility that they lose their access to Venezuelan oil before they recover their investment.
They deserve to lose everything. So matybe Trump forcing them into this is OK.
I hear Cuba is looking for some.
