Investing In Venezuela Oil Is A Bad Business Case

[markodochartaigh]

1. I remember people who said that under Bush II

the oil companies would be free to pump so much of "our oil that god had put under their sand" that gas would practically be free in the US.

I have never seen a company that faced with a huge surplus in their raw material would rush to produce so much product for consumers that they would be losing money. I suppose that my understanding of capitalism is faulty.

I think that it is the same with Venezuela. To the extent that it is about oil, I think that it is about the control of the oil. The BRICs have been moving towards trading oil without using dollars. This trading would endanger the dollar's reserve currency status, perhaps even more than Trump has endangered it. Having Venezuela's oil under effective US control should bust the wheels of BRIC's wagon.