Investing In Venezuela Oil Is A Bad Business Case

[Yo_Mama_Been_Loggin]

[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.

[Vogon_Glory]

2. Investing in Venezuela infrastructure before Orange Julius' attack was also a bad business move

I’m not supporting Orange Julius’ operation, but both Maduro’s and Chavez’s erratic economic policies put almost everyone’s investment in local infrastructure at risk. That is a major reason Venezuela’s economy is such a hot mess. For all the heartfelt concern about the structural inequalities in Venezuelan society pre-Chavez, nationalizing investments puts corporations’ investments at risk, and no CEO needing to please lenders or shareholders would dare invest big big bucks into properties that might be expropriated out from under them by some unexpected whim of Maduro or his predecessor.

Speaking of erratic chiefs of state, I understand there’s another one north of Tamaulipas’ and Chihuahua’s border with Texas.