Economy

US vs Venezuela Volatile oil market
Analyst: Strong boost in production will take several years

A strong boost in Venezuela's oil production is likely several years away. This is even if US oil companies were to invest billions, experts told Reuters.

The Latin American country has the world's largest estimated oil reserves, but in recent decades production has plummeted in the wake of a lack of investment from foreign companies after the nationalization of the industry. In addition, investments are required to address security risks, dilapidated infrastructure and the risk of long-term political instability.

- US companies will not return until they know that they are being paid and can operate under conditions of at least basic security, says Chris Well CEO Mark Christian.

Energy strategist Thomas O'Donnell points out that in the first stage it depends on Trump's success in achieving a peaceful political transition with limited resistance.

- Then production could increase sharply in five to seven years, when the infrastructure is repaired and investments are in place, he says.

Sources: Venezuela's oil exports crippled after attack

Venezuela's oil exports, already squeezed to a minimum by the US blockade of sanctioned tankers, have now effectively stopped. This is what several sources told Reuters after the US attack on Venezuela and the capture of President Nicolás Maduro yesterday.

According to the information, port captains have not received any applications to give the green light for departures of loaded ships. A total export ban - even for tankers linked to state oil company PDVSA's main partner Chevron - could force Venezuela to quickly reduce production at its oil fields, the news agency writes.

US President Donald Trump said on Saturday that an oil embargo against Venezuela was now "fully implemented" and that the US would oversee a political transition in the country. He also said that US oil companies would begin operating in Venezuela. 

SAS's future
Top manager: Eurobonus could be bigger than SAS

Eurobonus has grown into a billion-dollar business for SAS, selling bonus points for over 2.5 billion Norwegian kroner per year. At the same time, the bonus program could become more valuable than the airline. Eurobonus CEO Aron Backström tells Dagens Næringsliv.

He points out that bonus points in the US are seen as an obvious credit card rewards system compared to Europe, but predicts that the development will take "significant momentum in 2026" on the continent.

– [In the US] loyalty programs could have a higher value than the airline. It's going in the same direction here at home, although there's still some way to go, he says.