While the U.S. action is unlikely to have an immediate impact on crude prices given the current glut in the market, it could upend energy markets and have an impact on the geopolitical landscape.
The shale oil revolution made the U.S. the world's largest crude producer. Recent, massive oil finds off the coast of Guyana are largely controlled by ExxonMobil and Chevron. U.S. control of the Venezuelan energy industry, which sits on the world’s largest oil reserves, could “reshape the balance of power in international energy markets,” analysts with JP Morgan wrote Monday.
“The combined total could position the US as a leading holder of global oil reserves, potentially accounting for about 30% of the world’s total if these figures are consolidated under US influence,” JP Morgan wrote. “This would mark a notable shift in global energy dynamics."
