U.S. President Trump announced the U.S. will control Venezuela’s oil sales ‘indefinitely’, aiming to fix the country’s oil sector, which is producing well below capacity. Venezuela holds 300 billion barrels of proven oil reserves, but revamping the sector will require massive investment and technology upgrades. Analysts describe Venezuela’s energy infrastructure as “catastrophic”.

Venezuela’s energy sector began its descent after nationalizing ExxonMobil and ConocoPhillips assets in 2007. Companies that accepted new terms remained, while those that refused, like ExxonMobil and ConocoPhillips, left Venezuela. Departure led to legal battles and compensation, contributing to a decline in oil production. Venezuela’s oil pipeline network requires billions to restore.

Read more at Yahoo Finance: Why Trump Underestimates the Challenge of Reviving Venezuela’s Oil