US Energy Policy Leverages Venezuela for Inflation Control and Economic Growth

Key Quotes

"well the expectation today is to have a great conversation about the opportunity to continue president trump's agenda which is agenda of course has been always about the safety and security national security of our country that begins with you can't have national security without border security you can't have national security without energy security so that's going to be on the table and of course the prosperity of of america that's based on on energy as well because if without without a plentiful abundant reliable secure energy you're going to have the inflation like we saw in the previous administration president trump is turning that around so this is a really at the core it's a discussion about peace in the world and prosperity at home and what an opportunity economic opportunity to restore normal relations with venezuela and for companies including many of these that had operations in venezuela for decades ago when venezuela was a big economic partner of the united states before its collapse to get a chance to return to that so looking forward to it it's an exciting day and lots of interest in coming to the meeting today"

Secretary Burgum frames the meeting with President Trump as an opportunity to advance the administration's agenda, emphasizing that national security is intrinsically linked to border security and energy security. He argues that abundant energy is crucial for American prosperity and preventing inflation, suggesting that restoring relations with Venezuela presents a significant economic opportunity.

"well i i think the very strong interest how can you not be interested in the world's largest oil reserves in the same hemisphere so i think there's questions of course questions about security questions about what the long term profile is going to be but the interest level is through the roof across from the the small wildcatter to upstream midstream downstream the majors there's so much interest in this and not just in energy people are reaching out because the mining industry collapsed in venezuela their entire electrical generation industry has collapsed the opportunity with sanctions being selectively lifted for the us companies to sell into that market as it rebuilds is very interesting and of course we've got a number of energy companies that have spent their careers going into some of the world's dangerous places to develop oil resources and those folks some of those will be in the room today as well"

Secretary Burgum highlights the immense interest from energy executives in Venezuela's vast oil reserves, noting that this interest extends beyond energy to other industries like mining and electrical generation. He explains that the selective lifting of sanctions creates opportunities for U.S. companies to engage in Venezuela's rebuilding market.

"well the market is going to decide but i know that one thing that happened this week people keep saying oh below 60 there's going to be no interest through the department of interior we're holding our as required legal lease sales the one that we held in new mexico earlier this week on january 6th 327 million of royalty payments in a record the highest since these leases have begun under the new format we've over 40 almost 40 years 39 years ago in 1987 was when the new rules came in place it was 219 000 per acre on one of the leases in permian so i would say the interest us and in venezuela very strong in this industry because they see they look ahead and they see the demand for energy going up and of course driven by economic growth 2026 could be a banner year but also the energy required for us to win the ai arms race so there's a strong strong interest in this investing in this western hemisphere"

Secretary Burgum asserts that despite current oil prices, the energy industry's interest remains strong, pointing to successful lease sales as evidence. He explains that industry players look ahead and anticipate rising energy demand driven by economic growth and the energy needs for advancements like the AI arms race, indicating a robust interest in Western Hemisphere investments.

"well i think what president trump wants is he wants to break the back of inflation and he knows that there's a component of energy in the food you eat the clothes you wear the car you drive if you can get energy prices down that's the best way to lick inflation and affordability is something that matters president trump has has stopped the runaway inflation the prior administration he wants to keep it going when when we talk about how do we get prices down part of it is we've cut so much red tape in the last year we've lowered the break even point that plus the technological innovation from this industry the oil and gas industry is not what it was 50 years ago this is a super high tech industry you take a look at my home state of north dakota and you look at the capability and the productivity increases of the people developing there it's just been amazing the gains that they continue to make and again the shale revolution tied with deregulation cutting some of the red tape that was put in place we know that their break even point is getting lower and lower and that's why it makes it a great industry and that's why we've got the greatest industry in the country or in the world because in the us we've got competition we don't have a nationalized oil industry that's become a monopoly and lethargic we've got great companies that get out and compete we're going to be with some of those great companies today and excited to hear their ideas about how to go in and break free the incredible opportunity that it is for both the us and venezuela in developing this resource"

Secretary Burgum explains that President Trump's goal is to combat inflation by lowering energy prices, which he believes is a direct way to improve affordability for Americans. He credits deregulation and technological innovation for making the oil and gas industry highly efficient, leading to lower break-even points and a competitive advantage for U.S. companies.

"well the discussions right now have been that the capital is going to come from the capital markets and come from the energy companies i don't see that the that the these companies are going to need a support from the us other than things around security i mean if we can provide a secure stable environment the resource here is so significant and so large that it's going to be attractive for people to go in and develop that and particularly as the us maintains the embargo this is key you reported on it just now president trump serious i mean sanctions under president trump actually mean a sanction the failed sanctions under the biden administration just turned venezuela and other places into the discount gas stations for china and other countries and president trump is we're going to make sure that this is secure and we're controlling the flow both of energy going in and energy coming out"

Secretary Burgum states that capital for energy investments in Venezuela is expected to come from capital markets and the companies themselves, with U.S. support focused on security rather than direct financial backing. He emphasizes that President Trump's serious approach to sanctions aims to control the flow of energy and prevent other countries from benefiting from Venezuela's resources.

"well we'll find out some of that more today but i think what they really want to understand you know how serious is the us in maintaining the embargo how serious is the us in maintaining stability in venezuela and i think the actions that