Venezuela Deal Has Potential To Provide 2 Decades Of US And Global Economic Stability

Zoltan Ban 8.74K Followers Follow Summary The Trump administration's Venezuela oil deal could secure 65 billion barrels for US development, potentially stabilizing global energy markets for two decades. While immediate investment implications are unclear, the long-term outlook for the US stock market is improved by this prospective supply expansion. Breakeven costs for US producers in Venezuela are estimated near $70/barrel WTI, raising questions about direct profitability for Chevron, Exxon, and others. Rising Venezuelan oil output may reinforce US dollar demand and US Treasury stability, indirectly supporting broader market and economic resilience. Rising Venezuelan oil output has the potential to act as a repeat of what the shale boom did for the global oil market supply/demand balance in the 2008-2019 period, acting as the sole source of global supply growth. wildpixel/iStock via Getty Images Investment thesis As is too often the case, economic information is filtered through increasingly polarized political commentary, which results in flawed understandings of events and, thus, investment implications. The Trump administration's move to secure development rights for the US oil industry for about 65 billion This article was written by Zoltan Ban 8.74K Followers Follow My name is Zoltan Ban, I have a BA in economics. I am a personal investor with two decades of active trading experience. Analyst’s Disclosure: I/we have a beneficial long position in the shares of TTI, HAL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.