The international oil industry is a highly lucrative sector that is sturdily influenced by geopolitical developments. As the Post-Cold War era comes to a finish, a new status quo is rising. The U.S. was once the only player with the competence to significantly affect energy markets around the world. The country’s military and global associations proved dominant tools in controlling developments in areas such as the highly volatile Middle East. But Washington’s worldwide reach is fading, and both Russia and China are on the increase.
Moscow has become energy to reckon within several regions due to a mixture of diplomacy and energy politics. In addition to that, Washington’s foreign policy slipups have created power vacuums for other actors to take advantage, blunders such as the fresh, unexpected withdrawal from Northern Syria. Arguably, Russia has now become the most imperative power broker in the Middle East. Moscow’s plans, however, are not local, but global. The first-ever Russia-Africa summit is evidence of the Kremlin’s global ambitions.
Moscow has also nurtured strong relations with several countries in Latin America. Ever since the Monroe doctrine of 1823, the U.S. ponders Central and South America as its ‘backyard.’ Countries such as Venezuela, however, have repelled Washington’s power and influence. Therefore, when the rumor blew-out of the sale of South America’s largest energy company to Russia’s Rosneft, panic blew-out in Washington of potentially another foreign policy hindrance.
Venezuela’s national oil company is assessed to be worth $186 billion and is the country’s financial engine.