Chat Gpt analysis

Smedley Butler's book

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 answer

U.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 prices

If 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.

B. Refinery compatibility benefits

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.

C. Energy price stability (not cheap energy)

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.

2. Where benefits clearly do NOT goA. Profits do not flow to consumers

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 increased

Venezuelan 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

C. No direct tax relief or public revenue windfall

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 costs

Sanctions, enforcement, and military posture:

  • Cost U.S. taxpayers money

  • Are not offset by lower consumer prices

B. Inflation pass-through still dominates

Even with added supply:

  • Oil companies price fuel at what the market will bear

  • Refiners and retailers capture margins

  • Consumers still pay global prices

4. Net assessment

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.