New Delhi, Jan 25 (IANS) With deposing Venezuela’s Nicolas Maduro and taking over the country’s oil industry, the US is in the position to derail China’s ambitions in the South American country in the near future, according to reports.
Beijing’s foothold there is in doubt as the US asserts new power over Venezuela’s oil patch, reports Wall Street Journal.
“Beijing’s production deals, oil rigs and debt-backed supply arrangements have long bought it enormous sway in Venezuela — all of it now suddenly subject to the Trump administration’s preferences,” the report mentioned.
Chinese government-owned oil companies hold claims to more than 4 billion barrels of Venezuelan oil, which is nearly five times as much as Chevron — the only US major that today produces in the South American nation.
Venezuela’s cheap oil, of which up to 50 million barrels are expected to flow to the US, may then help Washington secure its own processing capabilities.
Meanwhile, President Donald Trump is encouraging US companies to re-enter Venezuela and invest $100 billion there. Chinese companies have invested around $4.8 billion in the South American country the last two decades, as per data by the US-based research firm Rhodium Group.
Trump also cited Venezuela while outlining his energy, economic, and security agenda this month, saying recent US actions involving the South American nation were helping lower fuel prices and support growth. He said the United States was now working with Venezuelan representatives and pointed to the country’s oil reserves as central to the effort.
Trump said the oil was being brought into the United States for refining and would help lower gasoline prices. He said energy policy was central to controlling inflation and restoring economic confidence.
Venezuela holds some of the world’s largest proven oil reserves, but production has been constrained for years by sanctions, infrastructure problems and political instability. Changes in US policy toward Venezuelan oil have often affected global energy markets.
—IANS
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