President Trump’s plan to seize control of Venezuela’s oil industry won’t immediately impact oil prices. Venezuela’s neglected oil sector needs major investments to boost production. Analysts suggest output could double or triple quickly. US oil companies seek stability before investing heavily. A successful revitalization could lower oil prices and pressure Russia.

Venezuela holds the world’s largest proven crude oil reserves. Exxon Mobil and ConocoPhillips monitor developments in the country. Chevron, with significant operations in Venezuela, focuses on safety and compliance. Political instability, corruption, and sanctions have hindered production. Infrastructure and political stability are key to attracting foreign investment.

Venezuela produces heavy crude oil needed for diesel and asphalt. Boosting production could ease global diesel shortages due to sanctions on Venezuelan and Russian oil. Access to Venezuelan crude would benefit US refineries and reduce reliance on Russian oil. Revitalizing the oil industry could weaken Russia’s position in the global oil market.

Seizing control of Venezuela’s resources raises legal questions. Ownership of Venezuela’s oil is a key issue. The Trump administration may claim that the Venezuelan government never rightfully owned the resources. International law concerns are dismissed by the administration. The legal complexities of controlling Venezuela’s oil industry remain unclear.

Read more at Yahoo Finance: Trump’s plan to seize and revitalize Venezuela’s oil industry faces major hurdles