When U.S. firms like Chevron gain access to Venezuelan oil, how—if at all—do U.S. consumers benefit?
Smedley Butler,in his book “War is a racket”, described his experience at using the military to steal other countries resources. The American Empire attacks Venezuela in order to steal it's oil, we know that Chevron, and individuals working for Chevron, will benefit. Having always believed that the cost of the theft is borne by US taxpayers, with little benefit, I asked Chat Gpt to analyze. And the answer is:
When U.S. firms like Chevron gain access to Venezuelan oil, how—if at all—do U.S. consumers benefit?
Short answerU.S. consumer benefits are indirect, limited, and often marginal. Most gains accrue to corporations, shareholders, and specific sectors—not to everyday consumers in a clear or proportional way.
Below is a clear breakdown.
1. Potential consumer benefits (in theory)A. Slight downward pressure on fuel pricesIf Venezuelan oil enters global markets:
It adds to global supply
More supply can moderate price spikes, especially during tight markets
U.S. gasoline prices are set by global oil prices, not domestic supply alone
Reality check:
Venezuela’s current export volumes are small relative to global demand, so any price effect for U.S. consumers is usually tiny and hard to notice at the pump.
Venezuelan crude is heavy oil, which:
Matches the design of certain U.S. Gulf Coast refineries
Can reduce refinery retooling costs
Helps keep those refineries operating efficiently
Consumer impact:
This may help avoid localized fuel shortages or price spikes, but it does not reliably lower prices nationwide.
Access to additional oil sources can:
Reduce exposure to sudden supply disruptions (wars, embargoes)
Stabilize markets during geopolitical crises
Key distinction:
Stability ≠ affordability. Prices may be less volatile, but not necessarily lower.
Chevron’s gains primarily go to:
Shareholders
Executives and employees
Contractors and service firms
Financial markets
There is no mechanism that automatically passes these profits to consumers.
B. U.S. energy independence is not increasedVenezuelan oil:
Is sold on global markets
Does not insulate the U.S. from global price swings
Does not meaningfully reduce reliance on international oil prices
Unlike some state-owned oil systems:
Chevron profits are not earmarked for public services
Tax contributions are limited by deductions, depreciation, and global accounting practices
Consumers do not receive rebates, lower taxes, or guaranteed public investment.
3. Costs often borne by consumers (indirectly)A. Foreign policy and enforcement costsSanctions, enforcement, and military posture:
Cost U.S. taxpayers money
Are not offset by lower consumer prices
Even with added supply:
Oil companies price fuel at what the market will bear
Refiners and retailers capture margins
Consumers still pay global prices
For U.S. consumers:
✔ Possible minor price stabilization
✔ Reduced risk of extreme supply shocks
✖ No guaranteed price reduction
✖ No direct financial benefit
✖ No proportional gain compared to corporate beneficiaries
Bottom line:
If there is a benefit to U.S. consumers, it is diffuse, indirect, and small, while the primary, measurable gains accrue to Chevron and related interests.