Energy: What the US Government Really Hopes to Get Out of South America

Since declaring himself Venezuela’s interim president in late January, Juan Guaido has drawn the world’s attention to the cash-poor, oil-rich nation. Several countries have recognized his presidency and condemned Nicolas Maduro, who has been accused of human rights offenses, corruption, and election rigging to stay in power.

A Civil Crisis, in Brief

Under Maduro’s governance, inflation has skyrocketed and food has run scarce, sparking waves of violent protests, that have erupted over and over in the last several years. An exodus of Venezuelan refugees have spilled over into neighboring Columbia, and the capital Caracas is plagued with deaths linked to the protests. International attempts to deliver aid have been largely refused, with some aid caravans catching fire, even when they did manage to make it across the border.

On January 23rd, the largely unknown opposition-party politician, Juan Guaido, declared himself the President of the Venezuelan National Assembly Government and began asking world leaders to recognize his legitimacy. Speaking tours were arranged around Venezuela, as well as other Latin American countries, asking for support and encouraging Maduro to abdicate peacefully. US leaders and news media began floating the possibility of military intervention to topple the regime—and the side benefits such an intervention might have.

Venezuelan Energy, Meet the American Government

Just days after Guaido made his announcement, National Security Advisor, John Bolton, expressed an interest in Venezuela’s oil assets under Juan Guaido, saying on Fox Business Network on January 24: “It’ll make a big difference to the United States economically if we could have American oil companies really invest in and produce the oil capabilities in Venezuela.” The next day, the Washington Post caught him holding a notepad on which he’d written: “5,000 troops to Columbia.”

President Donald Trump name-dropped Juan Guaido at the State of the Union Address in February, saying he supported his country’s “noble quest for freedom.” Soon thereafter, the President appointed Elliot Abrams as the US Special Envoy to Venezuela. Abrams, who served as Human Rights Advisor, overseeing US policy in Latin America during the 80’s, is well-known for endorsing opposition-backed rebellions, denying a massacre in El Salvador, and lying to Congress about the Iran-Contra scandal.

Oil VS Natural Gas

While talk of a military option has died down a bit in the last month, it remains to be seen how patient the State Department can be with the lure of so much fossil fuels lurking behind the promise of regime change. Venezuela has massive reserves of natural gas, which have gone largely untapped, according to the World Energy Council. Natural gas refers to trapped gases, such as methane, trapped deep beneath the earth’s surface, which is extracted in the controversial process commonly known as fracking. Is fracking hazardous to people, habitats, and the planet? Yes. Is natural gas renewable? No. Do American policymakers want to pursue it anyway? You bet.

At a biannual energy conference by IHS Markit in March, Secretary of State Mike Pompeo and Energy Secretary Rick Perry gave a joint speech which, according to CNBC, focused on the potential of US energy supplies to bolster allies and disrupt countries that would use their resources as a weapon. Specifically, Perry named liquefied natural gas as a “critical tool” to achieve energy security for the US and its allies while reducing dependence on Russian oil.

Right now, the State Department says it is only trying to find ways to weaken the Maduro government and negotiate a peaceful change of power.