FT predicted damage to American drilling companies from oil production in Venezuela

The plans of the administration of US President Donald Trump to increase oil production in Venezuela and lower world prices for raw materials may negatively affect the position of American shale producers. This was reported on January 9 by the Financial Times (FT) newspaper, citing industry representatives.

"If the United States actually starts supporting the growth of oil production in Venezuela, it will be a blow to American producers," said one of the heads of a large shale company.

According to the interlocutors of the publication, the influx of Venezuelan oil will increase the oversupply and make production in the United States unprofitable.

"We're saying that this administration is setting us up again. This is against American producers," said a top manager at one of the largest shale companies.

Kirk Edwards, the head of Latigo Petroleum, noted that the authorities are actually ready to spend American money to support the Venezuelan oil industry, rather than existing independent US producers. For most independent drilling companies in the United States, profitability is possible when the price of WTI oil is above $ 60 per barrel, while quotations fell below $56.

According to the US Energy Information Administration (EIA), oil production in the state in 2026 may decrease by 100,000 barrels per day, which will be the first drop since the pandemic. Against this background, shares of independent American oil companies have already dropped to 9%, as the market expects increased competition from Venezuela.

Peace plan: The United States announced a three-step process of change in Venezuela

Washington intends to take control of the oil sector, launch Western companies into the country and organize a transition of power.

On January 3, Trump, commenting on a large-scale US strike on Venezuela, said that the socialist regime of Venezuelan President Nicolas Maduro allegedly stole an oil structure from the United States. Later, on January 7, his vice president, J. D. Vance, said that Caracas was allowed to trade oil as long as it served Washington's interests.

On January 6, Reuters reported that the White House administration was going to hold meetings with the heads of Exxon Mobil, Chevron and ConocoPhillips to discuss the possibility of increasing Venezuelan oil production. It was clarified that American oil companies are ready to invest large sums in Venezuela to restore the oil infrastructure.

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