The Venezuela Energy Trusteeship and the Emergence of a Long
For investors, the unfolding reconstruction effort presents high-conviction opportunities in two key areas: oilfield services and the U.S. Gulf Coast refining sector.
U.S. Gulf Coast refineries could resume processing Venezuelan heavy crude. Restart depends on U.S. company investments and repairing Venezuela's oil infrastructure. Major refineries by Chevron, Valero, Marathon, and ExxonMobil have heavy crude capacity. Oil stocks surged after news of Maduro's capture and potential U.S. involvement.
C lustered along the US Gulf coast are some of the largest and most complex heavy-oil refineries in the world. These sprawling industrial hubs, owned by major US oil companies, stand ready to emerge as some of the major victors of Donald Trump's swoop on Venezuela.
The new legislation gives foreign companies clear operational control over production ventures, effectively relegating the national oil company, Petróleos de Venezuela, to secondary status.
The Dragon gas field, which holds an estimated 4.2 trillion cubic feet of reserves, sits near Venezuela's maritime border with Trinidad and has long been viewed as a potential lifeline for the island's gas-dependent industries.
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