A mainstay of President Donald Trump’s domestic energy policy has long been “drill, baby, drill,” but his recent calls for massive spending in Venezuela could reduce — or complicate — investments in U.S. oil and gas.
Industry leaders cheered as Trump slashed regulations aimed at fossil fuels and encouraged companies to produce as much U.S. oil and gas as possible, from Texas to North Dakota. Now, they face pressure to invest in South America — and analysts say there’s only so much capital to go around as companies weigh risks and rewards in many countries.
“It’s kind of a mutually exclusive thing — if you’re spending the dollars over here in Venezuela, then you’re not spending them in the Permian Basin and the Eagle Ford and the Bakken and the Marcellus and the Haynesville,” said Clayton Seigle, a senior fellow at the Center for Strategic and International Studies. “So, what’s our priority?”
Since the military intervention earlier this month that saw U.S. troops capture Venezuelan President Nicolás Maduro and his wife, Trump has asked major oil companies to spend at least $100 billion repairing and replacing Venezuela’s crumbling oil and gas infrastructure and ramping up production.
