Mint Explainer: Why haven’t oil prices crashed after US action in Venezuela?
What are the oil companies worried about?
Though Venezuela sits on huge reserves, its oil output is just 9,30,000 bpd – less than 1% of global output. This is because the sector has suffered from decades of under-investment and crumbling infrastructure. Reviving it will require billions of dollars of investment, which makes little sense at the current low oil prices. It will also need investment guarantees, security, and skilled professionals.
