Following the capture of Venezuelan President Nicolás Maduro by U.S. forces, President Donald Trump is setting his sights on Venezuelan oil. But according to reporting from the Wall Street Journal on January 7, Trump's goals with oil prices could put him at odds with the shale industry.
Now, Financial Times' Myles McCormick is reporting that "shale groups" are voicing their anxiety about Trump's Venezuela ambitions.
McCormick, in an article published on Friday, January 9, reports, "U.S. shale bosses have warned Donald Trump that his mission to seize Venezuela's oil sector and drive down crude prices will put American output on the chopping block. Trump is set to meet U.S. Big Oil chiefs on Friday, but executives at large independent drillers — who are not on the attendee list — are seething over the president's plan to flood America with Venezuelan crude."
A shale executive, interviewed on condition of anonymity, described Trump's Venezuela plans as "against American interests."
The executive told Financial Times, "We're talking about this administration screwing us over again…. If the U.S. government starts providing guarantees to oil companies to produce or grow oil production in Venezuela. I'm going to be…. pissed."
Trump's "drive to open up Venezuela's oil riches," according to McCormick, has "strained relations with oil executives in Texas."
"The ire in the shale industry — where many executives bankrolled the president's return to office — echoes a frustration in the MAGA movement that Trump is neglecting his 'America First' mantra," McCormick notes. "But problems in Texas' oil industry are mounting, as cheaper oil forces producers to idle rigs needed to keep production ticking higher."
Read the full Financial Times article at this link (subscription required).
