Sen. Markwayne Mullin on Venezuela: Stability is what we can bring to the region
Speakers
Markwayne Mullin
— Republican Senator from Oklahoma
Andrew Ross Sorkin
— Co-Anchor, Squawk Box
Summary
Sen. Markwayne Mullin discusses U.S. strategy in Venezuela after Maduro's capture, arguing that stability and U.S. presence can unlock the country's oil reserves and attract major oil companies. He also talks about permit reform that could lower oil prices while keeping oil companies profitable. The interview touches on China-Taiwan tensions, the Fed investigation into Jerome Powell, and U.S. posture toward Iran.
- Mullin says the U.S. focus on the Western Hemisphere aims to stabilize Venezuela and reduce drug flows.
- He argues Venezuela's oil reserves exceed Saudi Arabia's but have suffered from zero investment under Maduro.
- He expects major oil companies like ExxonMobil and Chevron to invest if Venezuela stabilizes.
- He says permit reform could lower oil drilling costs and allow crude prices near $45 per barrel.
- He sees the loss of Venezuelan oil as a squeeze on China, Russia, and Cuba.
- He rejects comparisons between the Venezuela action and a potential China move on Taiwan.
- He declines to comment on the Fed/Powell investigation, saying he awaits briefings.
- He warns Iran's regime that President Trump does not bluff.
Ideas
Venezuela stabilization unlocks oil major investment
If Venezuela stabilizes under U.S. pressure and has a government that welcomes investment, major oil companies, including ExxonMobil and Chevron, are likely to invest because Venezuela's oil reserves are greater than Saudi Arabia's and have suffered from zero investment; the speaker says every major company will want to participate due to the opportunity for companies and shareholders, with one company possibly moving first, though they want to see stabilization first.
Permit reform could lower oil to $45
Most oil companies need $60-$70 per barrel to be profitable, but if permitting and regulatory reform lowers the cost of drilling and delivering oil, the price can fall to about $45 per barrel while companies remain profitable; the speaker presents this as a way to meet the President's affordability goal and lower energy costs.
Permit reform keeps oil companies profitable
If permit reform and regulatory relief reduce the cost of drilling and delivering oil, oil companies can remain profitable even if crude falls to about $45 a barrel, allowing shareholders to still be happy; energy is the backbone of the economy.
