Unhedged Imperialism and the markets
81 snips
Jan 6, 2026 
Jamie Smyth, the US Energy Editor known for his expertise in oil markets and geopolitics, dives deep into the complexities of Venezuela's oil situation. He discusses the implications of Trump’s actions against Maduro and explores whether Venezuelan heavy oil holds long-term value despite its high production costs. Smyth highlights the interplay between refiners and major companies and why the oil market appears unaffected. He also touches on the investment required to revitalize production and the broader geopolitical dynamics affecting oil prices.
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Brooklyn Quip Frames The Questions
- Robert Armstrong joked he was briefly a Brooklyn neighbour of Nicolas Maduro and that Maduro appeared in Manhattan court on narco‑terrorism charges.
- He used this to frame open questions about what 'running' Venezuela would mean and whether the move is about oil.
Venezuela's Oil Is Heavy And Costly
- Venezuelan oil is mostly heavy crude, which is costly and hard to produce compared with US light sweet crude.
- That makes much of Venezuela's reserves uneconomic at current global prices around $60 a barrel.
Refiners Value Venezuelan Heavy Crude
- US Gulf Coast refineries are configured to process heavy crude and would benefit from more Venezuelan supply.
- That refinery fit explains strategic interest even if crude sales alone look unprofitable at current prices.