LatAm gushers and possible Venezuela exit a nightmare for Opec
Matein Khalid It is ironic that Opec, born as the brainchild of a nationalist Venezuelan oil minister in 1960, could die in 2027 as a result of events in that country. US President Donald Trump’s seizure of leader Nicolás Maduro in a military raid on Caracas and ambition to control 65 billion barrels of a vassal state’s proven oil reserves are triggering a seismic geopolitical realignment with…
Opec, originally established by Venezuelan oil minister in 1960, faces existential threats in 2027 due to events in Venezuela. US President Donald Trump's seizure of leader Nicolás Maduro and ambition to control Venezuelan oil reserves trigger geopolitical realignment, with US ownership of Venezuelan oil contradicting Opec's focus on sovereign control.
Trump's military raid on Caracas and Monroe Doctrine ambition lead to Venezuela becoming a de facto US imperial protectorate, restoring access to global finance and US-owned refineries. Venezuela's output of 1.2 million barrels per day (bpd) is minimal, yet the Iran war injects geopolitical risk premium in Brent crude. Trump's resurrection of the Monroe Doctrine mandates US dominance in the western hemisphere, impacting Opec's survival.
Opec faces threats from shale output in the US, Brazil's Santos Basin, Guyana's Exxon gusher, Argentina's Vaca Muerta basin, and the meteoric growth of Opec rivals. With US and South American output exceeding global demand, Opec may face a return to Darwinian oil price wars and geopolitical instability.
Written by urgent.news from Arabian Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
