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| It could be possibly in a 5-10 year horizon a profitable venture. Short term it will be costly. If you are to control the oil reserves and the government of Venezuela, a military presence will be needed. This could easily cost 10 billion a year and if things don’t go smoothly it could cost closer to 100 billion.
Also infrastructure of 20–50 billion will be needed to improve the oil procurement process. This could be handled by big oil companies, but they would need the assurance of a stable government so they could recoup their costs. These infrastructure improvement cost would take approximately $30 a barrel. Add $30 to the existing $30 to extract crude and ship. and that leaves a break even of $60 a barrel.
With the price of crude hovering around $60 a barrel, big oil may be hesitant to invest. This leaves USA to subsidize the venture in both infrastructure and military support.
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Venezuela oil reserves
