🔗 Share this article Trump's Bold Prediction on American Oil Funding in Venezuelan Faces Expert Doubt. Industry experts have expressed significant doubt regarding bullish claims that US oil giants will rapidly pump vast sums of dollars to fix the country's dilapidated energy sector. The Need for Absolute Guarantees Lacking an solid promise of full reimbursement from the Washington, specialists predict international firms to act with great care. “It is hasty to comment on any future business activities,” a representative commented this weekend. The ambitious timeline of less than a year and a half was publicly outlined. However, realistic assessments indicate a different picture. A Probable Timeline “It is likely going to take multiple years for any kind of output increase,” said one industry expert. Experts believe oil companies would likely spend: Year one: Sorting through new regulatory frameworks. Following phase: Beginning reconstruction of facilities. Year three: Being able to boost yield. The result could be an rise of around half a million barrels per day maybe by the end of the decade. Appetite Compared to Willingness for Spending Experts make a important separation between multinationals’ interest and their appetite to invest significantly. “I think their curiosity is an eight, on a scale of one to 10. However, their willingness is a mid-range score, because there is a lack of certainty yet.” Experienced observers in the region share this view. They believe that firms will politically talk up the opportunity while actually proceeding with great care. The Colossal Price Tag The required investment would be vast. Independent estimates suggest that adding between half a million and a million bpd would require more than $10 billion in investment over several years. Yet, rebuilding production to peak levels of around 2.5 million barrels per day could require a monumental $80 billion to $90 billion over six or seven years. The Pending Question of Government Backing The prospect of oil giants being compensated by the federal government has been repeatedly raised. However, concrete details on any guarantee have not yet been announced. This lack of a solid plan is the main reason behind the industry's hesitation. Operators seek safeguards against sovereign risk and the chance that a subsequent president could refuse any promise. “They must be protected from sovereign risk, that we’ve experienced in Venezuela before.” Ultimately, while rhetorical optimism runs strong, the practical risks suggest a path of measured steps for any large-scale venture in the country's oil sector.