Extracting Venezuelan oil sounds straightforward in theory. Reality? That's where things get complicated. Industry analysts point to a staggering $100+ billion capital requirement just to get operations running—and that's before you factor in infrastructure rebuilds, geopolitical risks, and regulatory uncertainty. Even with aggressive timelines, we're talking years of development before any meaningful production kicks in.
Oil majors aren't exactly lining up. The combination of political volatility, sanctions complexity, and the sheer scale of upfront investment makes this a hard sell. For traders watching macro trends, Venezuela's energy sector remains stuck in limbo—neither accessible nor predictable enough for serious institutional capital.
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NftDeepBreather
· 01-06 12:04
Venezuela's oil field? Uh... It takes over 100 billion USD to get started. Who dares to touch it?
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Basically, it's a hot potato—political risks + sanctions + uncertainty. Major institutions are all watching from the sidelines.
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In theory, oil can be produced, but in reality, it's all pitfalls... Who can wait through such an investment cycle?
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Oil giants avoid it at all costs. I don't see any short-term prospects.
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Political instability + skyrocketing costs—it's a structural dilemma.
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Year after year, "about to start," but nothing actually happens.
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Spending over 10 billion USD, with such a long return cycle... No wonder no one is playing.
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From a macro perspective, it's truly stuck—can't bottom fish nor can it be easily entered.
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SilentObserver
· 01-05 23:43
Venezuela's oil... it takes over 10 billion USD to get it started, who dares to touch it, really.
The political risk is so high that even oil giants are watching from the sidelines, I understand that too.
There's no hope for this in the short term, with sanctions and uncertainty, institutional funds are all avoiding it.
It's another locked market... kind of boring.
We have to wait until the political situation stabilizes to have a chance. Right now, going long is just gambling.
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LightningAllInHero
· 01-05 23:43
Venezuela's oil? Uh... it takes at least 10 billion USD to even start, who can handle that?
Oil giants have all left, with political risks + sanctions + unfinished projects, no one dares to take this deal.
Venezuela is a dead end; institutional capital simply won't touch it, it's too hot to handle.
By the way, does anyone still expect this to be thawed... feels hopeless.
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UncleWhale
· 01-05 23:30
Venezuela's oil? Uh... just thinking about that over 10 billion USD pit gives me a headache, not to mention having to wait several years to see the oil.
Compromises? Big capital is just watching the excitement, no one dares to pour real money into it.
This deal is too risky, with political risks plus sanctions, who the hell would want to take on this hot potato?
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CompoundPersonality
· 01-05 23:22
Oh my, how do you calculate this? Over ten billion dollars just to start, and that doesn't include the messy stuff that comes afterward.
That mess in Venezuela, oil companies all steer clear—who dares to touch it?
So what sounds like an opportunity is actually a trap.
Year after year, no oil comes out, and institutional funds have long seen through it.
If you ask me, just forget about it—it's too money-consuming and uncertain.
Wait, why are some people still trying to get in? Are they just looking for trouble?
Honestly, political risk is twice as dangerous—sanctions alone could cut off half of your life support.
So, to put it simply, this looks tempting, but you'll just end up crashing the moment you get involved.
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faded_wojak.eth
· 01-05 23:22
Venezuela's game... to put it plainly, it's a hot potato that no one dares to take.
A hundred billion dollars just to get started? That's laughable—who can afford to play that game?
Sanctions + political risks + infrastructure collapse—definitely a triple whammy. Even major oil companies are avoiding it.
Isn't this just an eternal "undeveloped" state? Institutional capital has long given up.
It looks simple, but in reality, it's hellishly difficult to execute.
Extracting Venezuelan oil sounds straightforward in theory. Reality? That's where things get complicated. Industry analysts point to a staggering $100+ billion capital requirement just to get operations running—and that's before you factor in infrastructure rebuilds, geopolitical risks, and regulatory uncertainty. Even with aggressive timelines, we're talking years of development before any meaningful production kicks in.
Oil majors aren't exactly lining up. The combination of political volatility, sanctions complexity, and the sheer scale of upfront investment makes this a hard sell. For traders watching macro trends, Venezuela's energy sector remains stuck in limbo—neither accessible nor predictable enough for serious institutional capital.