By: Yale Bock
On January 3 of 2026, the United States launched a military operation and captured the Venezuelan President Nicolas Maduro, and his wife. In doing so, it has potentially changed the global structure of energy markets. As Venezuela has the largest proven global reserves of any country, it opens the door for the United States to have long term structural advantage for access, control, and production of hydrocarbon assets, specifically in the western hemisphere. There are definitive challenges to making this a reality.
First, the largest publicly traded energy companies have a history of operations in Venezuela. The only one that operates there today is Chevron. Others left after their assets were expropriated and are owed billions of dollars by the Venezuelan government.
Second, the legal status of energy assets within Venezuela places foreign companies at a disadvantage in the event of a dispute. The country changed its constitution this week to make it more open to outside capital. Still, the largest energy entities across the globe have every reason to be cautious about heading back to a country that has a history of being unstable and taking away their valuable assets.
Third, any company that is interested in operating in Venezuela is going to have to be prepared to invest a great deal of capital into the infrastructure needed to rebuild the industry. Pipelines, roads, storage terminals, ports, and refineries are all going to need a great deal of repair or investment from scratch to realize the vision of having Venezuela’s oil production approach a three-million-barrel per-day level. It will not happen soon, either. Still, there are many companies interested in the opportunity, so it certainly is worth paying attention to how the situation evolves.
In Japan, the carry trade of borrowing in Yen and investing in higher-yielding assets across the globe is beginning to reverse. With leverage of up to fifty to one, currency markets can be the impetus for global selloffs across the globe. There have been many one- or two-day occasions where investors thought the carry trade would reverse, and then it typically calms down.
In Iran, tensions remain high as the US has sent military assets to the Middle East. With reports of Iran slaughtering up to thirty thousand protesters or more, the economic situation in the country remains unsustainable. The planning to try to dislodge an entrenched and barbaric regime is exceedingly difficult in a country of ninety million people. Iran remains a tinderbox, and it continues to be the largest opportunity for a different world in many regards.
Originally posted on February 2, 2026 on Y H & C Investments newsletter and blog
PHOTO CREDIT: https://www.shutterstock.com/g/kevin+walks
VIA SHUTTERSTOCK
DISCLOSURES:
Y H & C Investments may have positions in companies mentioned in this newsletter. Nothing in the newsletter should be taken as an offer to buy or sell individual securities. It is the responsibility of each investor to research the investments mentioned so they can decide on the appropriateness and suitability of the investments consistent with their risk tolerance, risk constraints, and return objectives.
