Venezuela oil deal raises trouble not capital

In addition to capital and technical skill, greater certainty over many years will be necessary. It's far from assured, as Venezuela has nationalized oil assets before. As part of the deal, Washington plans to take a 35% stake in a company run by Venezuelan businessman Alejandro Betancourt and to secure rights for 20% of its production at cost, according to the Wall Street Journal. This investment would be structured by the Pentagon using penny warrants, dubious currency that will be controversial in both countries. Plus, Trump wraps up his term in two years and Venezuela's unelected president holds power on an interim basis.

Given all these questions and challenges, it’s hard to see why Western oil companies would be interested. Chevron has stayed in Venezuela, and should produce about 280,000 barrels per day this year. It is also already poised to unveil a new and completely unrelated agreement to increase output substantially.

Others, including ExxonMobil, have been cooler on the country. In January, boss Darren Woods called it "uninvestable." Oil is easier and cheaper to pump in other places. A vague, flimsy and imperialistic arrangement for expensive, hard-to-reach, low-quality crude isn't much to crow about.