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United States President Donald Trump has promised to “take back” Venezuela’s oil reserves and unleash them onto the global market after abducting Venezuelan President Nicolas Maduro.

But exploiting the Latin American country’s vast reserves would face a host of big hurdles, from decrepit infrastructure and legal obstacles to leadership uncertainty in Caracas and an excess supply of oil in the global market, experts say.

Venezuela possesses the world’s largest known oil reserves – estimated to be some 303 billion barrels – but currently produces only a tiny fraction of global output. Its estimated output was 860,000 barrels per day (bpd) in November, less than 1 percent of the world’s total, compared with 3.7 million bpd during peak production in 1970.

The oil sector’s decline has been blamed on the combined effects of US sanctions and years of underinvestment, mismanagement and corruption under Maduro and his left-wing predecessor, Hugo Chavez.

While the Trump administration could boost supply in the short term by lifting sanctions, restoring Venezuela’s output to anything near peak levels would require huge investment and likely take years, according to energy analysts.

‘Venezuela’s oil infrastructure is in poor shape’

Oil prices moved only slightly in trading on Monday amid market expectations that output would remain largely unchanged for the foreseeable future.

“Venezuela’s oil infrastructure is in poor shape overall, due to lack of maintenance for both equipment and oilfield wells,” Scott Montgomery, a global energy expert at the University of Washington, told Al Jazeera.

“The state oil company, PDVSA, is well known to suffer from corruption and lack of expertise – many well-trained people have left the country to work elsewhere – and has been unable to invest in the country’s petroleum sector,” Montgomery added.

Thomas O’Donnell, an energy and geopolitical analyst based in Berlin, Germany, estimated that Venezuela could return to peak production in five to seven years in the “absolute best” circumstances, including a peaceful transfer of power.

“Longer term, if things are sorted out, yes, Venezuela can become one of the world’s biggest producers of oil. As far as how long that takes, that has all to do with the transition and what is put in place to manage that – both the country’s security and also to manage the investments,” O’Donnell told Al Jazeera.

Mixed messaging from Trump administration

Trump’s administration has provided conflicting messages on Washington’s exact plans for Venezuela and its oil reserves.

On Saturday, Trump said the US would “run” Venezuela and that US oil companies were ready to invest billions of dollars to build up the country’s dilapidated infrastructure and “get the oil flowing”.

In interviews with US media on Sunday, US Secretary of State Marco Rubio sought to downplay Trump’s remarks about controlling the country, saying the president was referring to “running policy” and his plans related to spurring private investment, “not securing the oilfields”.

Trump later on Sunday said Washington was “in charge” of the country and was “dealing with” members of the acting administration without providing details.

Under international law, the US has no claim of ownership over Venezuela’s oil reserves, as sovereign states possess the right to control and use their natural resources under the United Nations-endorsed Principle of Permanent Sovereignty over Natural Resources.

Foreign investors, however, can claim compensation when authorities seize their assets.

ExxonMobil and ConocoPhillips were awarded $1.6bn and $8.7bn, respectively, in international arbitration following the Chavez government’s 2007 nationalisation of the oil sector. Caracas did not pay out in either case.

US oil giants, including Chevron, ExxonMobil, and ConocoPhillips, have not commented directly on Trump’s claims about planned investments in Venezuela.

Chevron is the only large US oil company currently operating in Venezuela, the result of an exemption to US sanctions first granted by the administration of former President Joe Biden.

Consultancy Rystad Energy, based in Oslo, Norway, has estimated that Venezuela’s oil sector would need about $110bn in capital investment to return to its mid-2010s output of about 2 million bpd.

Patrick De Haan, an analyst at energy price tracker GasBuddy, said companies may be reluctant to commit to large investments in the country when global oil prices are hovering around $60 a barrel due to a glut of supply.

“It will take a longer amount of time than many likely realise. Oil companies in a low-priced environment of today would likely be cautious investing billions with oil prices already low,” De Haan told Al Jazeera.

“In addition, Trump seizing Maduro could lead to loyalists sabotaging efforts to increase output. A lot would have to go right to yield the most optimistic timelines.”

US companies are likely to carefully weigh political developments in Venezuela following their experiences with the Chavez government’s expropriation of their assets.

“Oil companies are not likely to rush into a situation where the state is in turmoil, security is lacking, and no clear path forward for political stability exists,” the University of Washington’s Montgomery said.

Maduro due in court in New York

Interim President Delcy Rodriguez, who was Maduro’s deputy, is now leading the country following a ruling by Venezuela’s Supreme Court.

Maduro is scheduled to appear in a New York court on Monday to face charges related to alleged drug trafficking and working with criminal gangs.

Venezuela’s government has condemned the Trump administration over Saturday’s bombing and overthrow of Maduro, labelling his capture a “cowardly kidnapping”.

Russia, China, Iran and Brazil, among other countries, have accused Washington of violating international law, while nations including Israel, Argentina and Greece have welcomed Maduro’s forced removal.

OPEC, which sets limits on production for its 12 members, including Venezuela, is another factor in the Latin American country’s potential oil output.

“Venezuela is a member of OPEC, and like many countries, may become more actively subject to quotas if output climbs,” De Haan said.

Phil Flynn, a market analyst at the Price Futures Group, said reviving Venezuela’s oil production would face “significant challenges”, but he was more bullish about the near-term prospects than other analysts.

He said the market could conceivably see a couple of hundred thousand more barrels a day coming online in the coming months.

“We’ve not had a free Venezuela, and sometimes the US energy industry has the capability to do a lot more than people give them credit for,” Flynn told Al Jazeera.

Dec. 22 (UPI) — Beijing unveiled tariffs as high as 42.7% on imports of European Union dairy products on Monday, saying the subsidies Brussels provided to producers in the 27-country bloc were the cause of “substantial damage” to China’s dairy industry.

The import taxes of between 21.9% and 42.7%, which come into force Tuesday following a 16-month-long anti-subsidy probe by China’s Ministry of Commerce, will affect France’s famous Roquefort, other blue, fresh and processsed cheeses as well as whole and unsweetened milk and cream.

“The investigating authority has preliminarily determined that imported dairy products originating from the European Union were subsidized, causing substantial damage to the relevant dairy product industry in China, and that there is a causal relationship between the subsidies and the substantial damage,” the ministry said in a statement.

It said that the highest levy would be applied to the products of firms that had failed to cooperate with the investigation with firms that had been cooperative only subject to a rate of 28.6%.

Firms named in the ministry list hailed from across the bloc with France, the Netherlands and Belgium heavily represented. Italian and Spanish producers also feature. Most companies were hit with a rate of 28.6% or 29.7%.

The Netherlands’ Friesland Campina and its subsidiary in neighboring Belgium were both hit with the top 42.7% rate along with an “Other EU Companies” grouping, which is not specified. It is unclear if this group is all EU companies not named in the document that export to China.

The EU criticized the action, saying it was neither justified nor warranted.

The move came just over a year after the EU hit China’s massive EV sector with import tariffs of as high as 36.3%, alleging unfair competition due to subsidies provided to the industry by the Chinese government.

Among the big three EV makers — BYD, Geely and SAIC — BYD and Geely were slapped with duties of 17% and 19.3% respectively, along with a 21.3% tariff on other “cooperating companies.”

The top rate was applied to SAIC together with other EV makers deemed not to have cooperated with the EU’s investigation.

The EV tariffs also saw Beijing launch anti-competition probes into Europe’s brandy and pork products industries, leading to accusations the EU was dumping surplus pork production in the Chinese market.

In September, Beijing imposed short-lived tariffs of between 15.6% and 62.4% on EU pork and pig by-product imports, but revised them down to between 4.9% and 19.8% on Tuesday.