{"id":199893,"date":"2026-01-25T20:29:11","date_gmt":"2026-01-25T20:29:11","guid":{"rendered":"https:\/\/teknomers.com\/en\/from-venezuela-to-wall-street-why-the-world-invests-over-570-billion-a-year-in-oil-even-though-theres-already-plenty\/"},"modified":"2026-01-25T20:29:13","modified_gmt":"2026-01-25T20:29:13","slug":"from-venezuela-to-wall-street-why-the-world-invests-over-570-billion-a-year-in-oil-even-though-theres-already-plenty","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/from-venezuela-to-wall-street-why-the-world-invests-over-570-billion-a-year-in-oil-even-though-theres-already-plenty\/","title":{"rendered":"From Venezuela to Wall Street: Why the World Invests Over $570 Billion a Year in Oil… Even Though There’s Already Plenty?"},"content":{"rendered":"\n
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Understanding the Oil Investment Landscape<\/h3>\n

The recent military operation to oust Nicol\u00e1s Maduro prompted former President Trump to summon major oil companies to the White House, urging them to invest $100 billion to revive Venezuela\u2019s faltering oil industry. While companies like ExxonMobil<\/strong> and Conoco<\/strong> approached this proposal cautiously due to previous confiscations, others such as Chevron<\/strong> and Repsol<\/strong> expressed eagerness to invest significantly, demonstrating that oil remains a pivotal element in geopolitical strategy, irrespective of an apparent surplus.<\/p>\n

A Defensive Investment Strategy<\/h3>\n

Elena Marabini, an energy transition analyst at Alantra<\/strong>, emphasizes that oil is not merely about price; it’s also a means of power, international influence, and energy security. Investing in upstream oil production is crucial, even amid an oversupply. The rationale is clear: developing a new oil field takes 10 to 20 years from licensing to market. Existing fields, however, experience a natural decline in production of 5-6% annually. As such, much of the current investment efforts are not aimed at increasing capacity but at counteracting structural production declines. Failing to invest now might lead to significant supply bottlenecks in the future.<\/p>\n

The Impact of Demand Growth<\/h3>\n

According to Homayoun Falakshahi<\/strong>, head of crude analysis at Kpler<\/strong>, if global investments ceased, the world could lose 40% of oil production each year. Demand continues to rise, albeit slowly. Even the European Union is delaying its ban on combustion engines to 2035, which suggests persistent demand in the long term. Moreover, Manuel Maleki<\/strong> of Edmond de Rothschild<\/strong> points out that structural depletion in oil production compels the industry to replace 4 to 5 million barrels daily just to maintain output levels.<\/p>\n

Price Mechanisms and Economic Reality<\/h3>\n

Oil prices, currently around $64 per barrel, interact critically with production costs. Lower prices can make high-cost production unviable, especially methods like fracking necessary for shale oil. This mechanism creates an \u201ceffect breakeven\u201d\u2014if companies cut investment in response to lower prices, future production decreases, ultimately driving prices back up.<\/p>\n

Banking Trends and Geopolitical Shifts<\/h3>\n

In 2024, the largest 65 banks globally committed $869 billion to fossil fuel operations, indicating a renewed appetite for investing in oil despite climate commitments decreasing. Influential figures like Larry Fink<\/strong>, the CEO of BlackRock<\/strong>, initially pushed for drastic changes in fossil fuel finance but have since pivoted due to political and competitive pressures.<\/p>\n

The prioritization has shifted from ecological concerns toward securing energy autonomy amid rising geopolitical instability. This shift has underscored the perceived need for stable fossil fuel supplies, given the current expansion of AI and its accelerated demand for reliable energy sources.<\/p>\n

The Future of Energy Investments<\/h3>\n

Critics like Joeri de Wilde from Triodos Investment Management<\/strong> argue that expanding fossil fuel capacity does not equate to enhanced energy security. This investment approach ties economies to volatile markets and poses geopolitical risks related to fossil fuel-exporting nations. As awareness grows, a more diversified energy system centered on renewables might emerge as the true path to energy security, reducing reliance on finite resources.<\/p>\n

In summary, the complex interplay between geopolitical pressures, investment strategies, and market dynamics indicates that the oil industry remains an essential player. While current trends show a significant commitment to fossil fuels, the future may lie in balancing traditional energy sources with a transition to renewable infrastructures for sustainable security.<\/p>\n


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General News – 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Understanding the Oil Investment Landscape The recent military operation to oust Nicol\u00e1s Maduro prompted former President Trump to summon major oil companies to the White House, urging them to invest $100 billion to revive Venezuela\u2019s faltering oil industry. While companies like ExxonMobil and Conoco approached this proposal cautiously due to previous confiscations, others such as […]<\/p>\n","protected":false},"author":1,"featured_media":199894,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23832],"tags":[36724,42625],"class_list":["post-199893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-economia-empresas","tag-nlpremium"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/199893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=199893"}],"version-history":[{"count":1,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/199893\/revisions"}],"predecessor-version":[{"id":199895,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/199893\/revisions\/199895"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/199894"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=199893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=199893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=199893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}