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fracking
Even as Trump Suggests US Taxpayers May Foot the Bill, How Bullish Is Big Oil on Venezuela?
"The appetite for jumping into Venezuela right now is pretty low," one industry source explained to CNN.
Jan 06, 2026
While President Donald Trump has openly stated that the US will seize Venezuela's oil in the wake of the US military's abduction of Venezuelan President Nicolás Maduro, there are questions about just how much interest big oil companies have in the president's desire for plunder.
In a Monday interview with NBC News, Trump insisted that US oil companies would invest the billions of dollars needed to rebuild Venezuela's oil extraction infrastructure, and he even floated having US taxpayers reimburse them for their efforts.
"A tremendous amount of money will have to be spent, and the oil companies will spend it, and then they’ll get reimbursed by us or through revenue," Trump explained.
However, other recent reporting indicates that oil companies are not gung-ho about the president's plans.
According to a Monday report from CNN, US oil companies have several reasons to be wary of making significant investments in Venezuela, including political instability in the wake of Maduro's ouster, degradation of the country's oil infrastructure, and the fact that the current low price of oil would make such investments unprofitable.
"The appetite for jumping into Venezuela right now is pretty low," one industry source explained to CNN. "We have no idea what the government there will look like. The president’s desire is different than the industry’s. And the White House would have known that if they had communicated with the industry prior to the operation on Saturday."
Another industry source told CNN that the president doesn't appear to understand the complexities of setting up major petroleum extraction operations, especially in politically unstable countries.
"Just because there are oil reserves—even the largest in the world—doesn’t mean you’re necessarily going to produce there,” they said. "This isn’t like standing up a food truck operation."
The American Prospect's Ryan Cooper added some more context to oil companies' reluctance to go all-in on Trump's looting scheme, noting in an analysis published Tuesday that US fracking companies could feel real financial pain if Trump floods the market with even cheaper Venezuelan oil.
"The price of oil, about $58 at time of writing, is already dangerously low for American fracking companies, whose investments typically pencil out with prices at $60 per barrel or above," Cooper explained. "More oil on global markets means those prices would drop even lower, crushing the economics of drilling even further. The US oil industry needs Trump to swoop in and add another few million barrels a day of production like it needs a hole in the head."
Cooper added that while Venezuela has a large quantity of oil, its quality is very low, which could also hinder oil companies' ability to produce a profit from extracting it.
"The product is so gloopy that you have to cut it with some kind of solvent to get it to flow in a pipe," he wrote. "In short, it’s expensive to drill, transport, and refine, just like the fracked oil that is barely turning a profit right now."
Reuters reported on Tuesday that Exxon, ConocoPhillips, and Chevron are set to have a meeting at the White House this week to discuss the prospects of extracting oil from Venezuela.
An industry source told Reuters that "nobody in those three companies has had conversations with the White House about operating in Venezuela, pre-removal or post-removal to this point."
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A 'Dirty Deal With Trump': Hochul Draws Fury Over Fracked Gas Pipeline Approval
"Under Gov. Hochul’s leadership, New Yorkers’ voices were silenced to appease President Trump’s fossil fuel priorities," said one critic.
Nov 07, 2025
Democratic New York Gov. Kathy Hochul came under fire Friday after her administration approved a previously rejected fracked gas pipeline over the objection of climate and conservation campaigners.
The New York Department of Environmental Conservation (DEC) announced approval of permits including a Clean Water Act Section 401 Water Quality Certification for the proposed Northeast Supply Enhancement (NESE) pipeline. Commonly known as the Williams Pipeline, the expansion project involves the construction of a 23.5-mile fracked gas conduit beneath the Raritan Bay and Lower New York Bay. The pipeline would carry hydraulically fractured gas from Pennsylvania across New Jersey and into New York.
“As governor, a top priority is making sure the lights and heat stay on for all New Yorkers as we face potential energy shortages downstate as soon as next summer,” Hochul said in a statement. “We need to govern in reality.”
DEC assured that it is "committed to closely monitoring the project’s construction and adherence to all permit conditions to ensure the full protection of New York’s waterways."
This, after the agency twice denied water quality certification for the same pipeline for failing to demonstrate compliance with state quality standards.
In 2020, the DEC under then-Gov. Andrew Cuomo, who is also a Democrat, denied certification for the project after finding that the proposed pipeline was likely to harm water quality by stirring up sediment and other contaminants that “would disturb sensitive habitats, including shellfish beds.”
The advocacy group New York Communities for Change noted in a fact sheet that the project "would jack up already-high utility bills" and be a "super-polluter" that would "generate about 8 million tons of additional climate-heating and asthma-inducing air pollution each year."
"The pollution would also foul our water, including stirring up toxic waste during the construction process," the group added. "The project would especially hurt people on the Rockaways, a majority African American community, where it would terminate."
BREAKING: Hochul just did Trump’s bidding by approving the massive Williams fracked gas pipeline.Hochul’s dirty deal with Trump will jack up our utility bills, pollute our air & water, and cook the climate.Join us at 3:30 outside her office 919 3rd Avenue to protest TODAY.
— New York Communities for Change (@nychange.bsky.social) November 7, 2025 at 9:22 AM
However, Williams Companies, the group behind the project, filed a new application this year amid pressure from President Donald Trump for Hochul to green-light construction.
“Today’s decision by New York is a complete reversal of their two previous determinations to reject this pipeline project over threats to the state’s water resources," Mark Izeman, senior attorney for environmental health at the Natural Resources Defense Counsel, said in a statement Friday.
"The pipeline proposal is exactly the same, and state and federal law is the same, so there is no legal or scientific basis for taking a 180 degree turn from the state’s past denials," Izeman continued. "If built, the pipeline would tear up 23 miles of the New York-New Jersey Harbor floor; destroy marine habitats; and dredge up mercury, copper, PCBs, and other toxins."
The project "would also harm sensitive shellfish beds and fishing areas, and undercut billions of dollars New York has invested to improve water quality in the harbor," he added.
Earthjustice New York policy advocate Liz Moran said that “it is shameful that Gov. Hochul and her Department of Environmental Conservation made a decision that fails to protect New Yorkers and our precious waterways."
"We are reviewing the certificate and evaluating our options," Moran added. "The certificate application hasn’t changed since being previously rejected by the DEC, water quality standards haven’t changed—only the political context has changed, and that’s not a basis to completely reverse course.”
Sane Energy Project director Kim Fraczek also condemned the approval, asserting that "under Gov. Hochul’s leadership, New Yorkers’ voices were silenced to appease President Trump’s fossil fuel priorities."
"Hochul has made it abundantly clear that she will abdicate her responsibility as governor, violate New York’s signature climate law, dismiss the environmental and affordability struggles facing New Yorkers, and bend the knee to Trump for political expediency," Fraczek added.
Roger Downs, conservation director at the Sierra Club’s Atlantic chapter, said, "It is truly a sad day when New York leaders cave to the Trump administration and agree to build pipelines that New Yorkers do not need and cannot afford."
“This decision is an affront to clean water, energy affordability, and a stable climate," Downs added.
Food & Water Watch New York state director Laura Shindell called Hochul's approval "a betrayal of New Yorkers."
“In granting the certification for this pipeline, Gov. Hochul has not only sided with Trump, she’s fast-tracked his agenda," she continued. "Hochul has shown New Yorkers she’d prefer to do Trump’s dirty work rather than protect our waterways from pollution."
"She hasn’t kept her promises to fight against skyrocketing energy bills or the climate crisis," Shindell added. "But New Yorkers will fight Hochul’s dirty pipeline every step of the way—alongside our communities—until it is stopped for good.”
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Trump and Wright Are Turning America Into a Gas Station Masquerading as a Nation
Much of what they’ve been doing—from cutting funding for the arts to cancelling major renewable projects—seems designed to insure that fracked gas will be our central legacy.
Sep 09, 2025
Way back in January of 2015, six months before Donald Trump began America’s escalator-like descent, Sen. John McCain of Arizona took to the floor of the Senate to describe Russia as “a gas station masquerading as a country.” He was responding to the invasion of Crimea, and demanding the US stand up to Moscow; within a few weeks others has shortened his bon mot to “gas station with nukes.” It hit at an essential truth: Russia, for all its size and might, hadn’t developed much of anything in recent decades; Vladimir Putin survived by pumping gas to the rest of the world, resting on the weapons his Soviet predecessors had bequeathed him.
Eight months into the second Trump administration, what are we? The president and his minions have been enriching themselves, and doing it by stripping the state that better women and men had built in the decades before. Our scientific and medical prowess? Our great universities? Our shared culture, from public broadcasting to the National Endowment for the Arts to the Kennedy Center? Even our history, as the Smithsonian comes under attack. But we still have a lot of fracked gas, dammit! And—viewed one way—much of what they’ve been doing seems designed to insure that fracked gas will be our central legacy.
On the list of odd things the administration has done, shutting down work on offshore wind projects off the New England coast may be among the oddest. These projects are enormous investments, have been in the works for many years, and have acquired (with painful slowness) the necessary permits. Now, just as they’re coming online, they’re being shut down. I can’t really think of any equivalent—it’s as if, in the 19th century we built the Erie Canal and then decided, forget it, let’s keep using wagons. It’s as if in the 20th century, we built the interstate highway system and then decided to simply seal off the exits and let it just lie there unused. What kind of logic turns a paid-for and productive asset into an aqueous Stonehenge?
This kind of logic: If those turbines start funneling electricity into New England, they won’t need to burn as much natural gas to produce electricity. They won’t need the new pipelines that Big Oil wants to build north. And who would that hurt? Well, Christopher Wright is Trump’s secretary of energy. He was formerly CEO of Liberty Energy, the nation’s second-largest fracking firm. Here’s how the Energy Department describes his background (after describing him as a “dedicated humanitarian”):
He founded Pinnacle Technologies and served as CEO from 1992 to 2006. Pinnacle created the hydraulic fracture mapping industry, and its innovations helped launch commercial shale gas production in the late 1990s. Chris was chairman of Stroud Energy, an early shale gas producer, before selling to Range Resources in 2006. Most recently, Chris served as chairman and CEO of Liberty Energy, where his team helped to expand the shale revolution to include oil as well as natural gas.
And here’s Christopher Wright, speaking at the Council on Foreign Relations on the eve of a trip to Europe next week to “promote American gas.” According to him, the Paris climate accords are “silly” and “climate change, for impacting the quality of your life, is not incredibly important. In fact, if it wasn’t in the news, in the media, you wouldn’t know.”
I have my guesses how well this will go down with Wright’s European hosts—the continent has just endured its worst wildfire season since record-keeping began. Portugal, Spain, and Greece have been especially hard hit; France recorded its biggest wildfire since at least 1949, which shrouded much of the country in smoke. As one local mayor said, “Everything is burned. More than half or three-quarters of the village has burned down. It’s hellish, a lunar landscape.” Even that green and pleasant isle of England has had its worst fire season ever, which makes sense since it was the hottest summer in UK history.
But for the moment let’s forget about Europe, and indeed about climate change, and instead focus on East Coast electricity users, because they’ll be paying the highest price for Wright’s folly. Canary Media’s Jeff St. John, in an epic account last week, laid out the costs of shutting down a massive source of supply that regional energy planners had been counting on:
It would leave a gaping hole in New England’s energy mix, driving up the region’s already-high electricity prices and leaving its grid more vulnerable to collapse during winter storms. New England’s grid operator has already factored the 704-megawatt wind farm into its plans starting next year. Delaying delivery of that power “will increase risks to reliability,” ISO New England warned in a statement last week.
In fact, that warning from the ISO, or Independent System Operator, in New England is worth reading. It comes from a largely anonymous agency charged with keeping the region online:
“Unpredictable risks and threats to resources—regardless of technology—that have made significant capital investments, secured necessary permits, and are close to completion will stifle future investments, increase costs to consumers, and undermine the power grid’s reliability and the region’s economy now and in the future,” ISO New England said in the statement.
That’s not the language these guys usually use. Abe Silverman, a Johns Hopkins researcher, called it “unprecedented.” But then, so is taking a huge energy generator offline for no reason:
“We’re talking about a really significant hit to consumers, at a time we’re all hyper-concerned about inflation and energy prices generally,” Silverman said. Losing Revolution Wind’s electricity could cost New England consumers about $500 million a year, he estimated, based on the value the project has secured in ISO New England’s forward capacity market and its potential to supplant costlier power plants used during grid emergencies.
And “we don’t need a bunch of fancy studies to tell us that these units are needed for reliability,” he said. New England has long struggled to meet electricity demand during winter cold snaps and summer heatwaves. When temperatures surpassed 100°F for several days in June, “they had every single generator on,” he said. “Here we have a unit that should be operating as of next summer that is now in doubt.”
But it’s during the winter months that the loss of Revolution Wind could be most keenly felt, said Susan Muller, a senior energy analyst at the Union of Concerned Scientists. That’s when the region’s limited supply of fossil gas is stretched even thinner, since the fuel is used both for building heating and power generation. ISO New England is banking on offshore wind—which blows most strongly in the winter—to meet energy needs as temperatures plummet.
As the Times reported, “Revolution Wind was expected to generate electricity for more than 350,000 homes at 9.8 cents per kilowatt-hour, a rate that would be locked in for 20 years and is cheaper than the average cost of electricity in New England, according to America’s Clean Power.” In fact, a new study released last week found that if Revolution Wind had been in operation last year, it would have saved consumers $400 million, lowering their energy prices 11% and “insulating ratepayers from expensive, volatile natural gas.” Given America’s insane levels of inequality, that might not mean much to “humanitarian” Wright: he sold his fracking stock for $53 million when he took the Energy Department job. But I live in New England—I know lots of people who have trouble paying their power bills.
There is no mystery here. Across the country, as Princeton’s Jesse Jenkins was the latest to point out, the old canard about renewable electricity being expensive is simply not true—many states with more wind have cheap power prices. It’s not less reliable; with new batteries just the opposite is true. In fact, in the heart of the shale fracking belt in Texas, the head of the state’s Energy Reliability Council said earlier this summer that its blackout risk had been greatly reduced. Read the numbers here to get a sense of how backwards Wright and Trump have it:
The addition of more than 9,600 megawatts of capacity to the state’s grid since last summer, coupled with conservative operations and reliable management, has produced this result, Vegas said at an ERCOT board of directors meeting this week.
“The state of the grid is strong, it is reliable—it is as reliable as it has ever been and it is as ready for the challenges of extreme weather,” Vegas said. “I feel confident that we are ready for this upcoming summer season.”
Of the new capacity added, 5,395 megawatts came from solar, 3,821 megawatts from energy storage and 253 megawatts from wind power. Kristi Hobbs, ERCOT’s vice president of system planning and weatherization, said the risk of emergency as the sun goes down and Texans continue to pump their air conditioners has been greatly reduced due to the large contributions from solar and battery storage.
“That does put us in a better position to get over those evening ramps as we go into late summer,” Hobbs said.
In the same time frame of the solar and storage additions, there’s been a net loss of natural gas capacity. Retirements, deactivations, and derates, or a loss of available capacity, of gas plants, resulted in a reduced capacity of 366 megawatts on the grid since last summer.
I am pretty sure that Christopher Wright knows all this. He tweeted out the other day that “wind and solar energy infrastructure is essentially worthless when it is dark outside, and the wind is not blowing.” This is not a mistake, I think; it’s a lie. Surely he’s heard about batteries, and surely he knows that they’re now one of the biggest sources of nighttime supply in California because they’ve been soaking up sunshine all afternoon.
But Wright and Trump don’t care about consumers of electricity. They don’t care about the big companies building the wind farms that they’re driving close to bankruptcy (these, remember, are competitors with Big Oil). They don’t care about the thousands of jobs lost in the process. Here’s how the head of the Building Trades unions described the stop work order:
Let’s call the Department of the Interior’s stop-work order for Revolution Wind what it is: President Donald Trump just fired 1,000 of our members who had already labored to complete 80% of this major energy project. A “stop-work order” is the fancy bureaucratic term, but it means one thing: throwing skilled American workers off the job after they’ve spent a decade training, building, and delivering.
This project isn’t some pipe dream; it’s real steel in the water and $1.3 billion in investment already on the ground. And with the stroke of a pen late on a Friday, President Trump personally signed off on killing these jobs and creating chaos. He pulled the plug on an almost-finished project, taking jobs, paychecks, and food off the tables of working families in Connecticut and Rhode Island.
No, I think it’s pretty clear that Trump and Wright are engaged in an effort to turn America into a—well, a gas station masquerading as a nation. They’ve already coerced New York Gov. Kathy Hochul into potentially allowing a natural gas pipeline through the state in return for allowing work to continue on the Empire State’s offshore wind project. They’re now at work on Massachusetts Gov. Maura Healey, and she appears to be caving; in truth, she may not have much choice. If the federal government cuts off the biggest and cheapest source of energy supply, she still has to keep the lights on and furnaces running.
Exactly the same thing that’s happening with wind is happening with solar—a new report Sunday warns that that “these policies could cut 44 GW of US solar growth by 2030—an 18% decline. Compared with pre-HR1 forecasts, that’s a total loss of 55 GW, or 21% fewer solar projects by 2030”:
“Solar and storage are the backbone of America’s energy future, delivering the majority of new power to the grid at the lowest cost to families and businesses,” said SEIA president and CEO Abigail Ross Hopper. She added that the administration is “deliberately stifling investment, which is raising energy costs for families and businesses, and jeopardizing the reliability of our electric grid.”
And if New England’s wind farms make an easy target because these states voted against Trump, that’s not true of the solar damage: “This year, 77% of new solar capacity has been built in states Trump won. Eight of the top 10 states for new installations—Texas, Indiana, Arizona, Florida, Ohio, Missouri, Kentucky, and Arkansas—all went red in 2024.”
This is an all-out effort to stifle competition with Big Oil. It could not be more cynical—it’s the Putin playbook, producing misery for normal people and big profits for politically connected oligarchs. That’s what “energy dominance” means. It won’t work in the rest of the world, I think—just at random, here’s a story about how battery storage is surging in Pakistan and another about the spread of solar to Brazil’s poor urban favelas and another about the island that Belgium is building to anchor its wind industry, and another about how even fast-growing India is now using less fossil fuel to generate electricity. Globally, solar construction surged 64% in the first half of the year.
So the world will continue on its rational course. But the US is now building solar at only about 8% of the pace of the Chinese. If this looting succeeds here at home, than in a decade foreign tourists who can still get a visa will arrive to gawk at the colonial Williamsburg of internal combustion, to see how primitive societies powered their lives. By then Trump will be gone, and Wright will still have his millions. For the rest of us, at least we will still have nuclear weapons to make us a “great nation,” just like Russia
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