On Friday February 22nd, billionaire Richard Branson hosted a Venezuela Live Aid concert in the remote Colombian town of Cúcuta. Cúcuta, a medium sized city in north eastern Colombia, is 350 miles away from the capital of Bogota. It is a curious location for a billionaire philanthropist to be holding an international charitable concert. Particularly when the original Live Aid was held 34 years ago in the global metropolis of London.

Cucuta — “Colombia and Venezuela united forever.” (Eline van Nes/The Tico Times)

Branson’s stated purpose for Venezuela Live Aid was to raise $100m to buy food and medicine to be donated to the Venezuelan people. Branson went on to acknowledge that he hoped that the Venezuelan military would “defy” Maduro. Branson hosted the concert at the behest of the US backed Venezuelan opposition leader, Juan Guaido.

The question this raises is why does Branson have such a keen interest in Venezuelan domestic politics? Branson’s interest in Venezuela coincides with a US and Western nation attempt at influencing Venezuelan politics.

Operation Condor 2.0

The US government has been open about its intentions to remove Venezuelan President Nicolás Maduro from power. In early February 2019, the US and other Western nations recognized pro-big business Venezuelan opposition leader Juan Guiado as the interim president of Venezuela. President Trump recently warned the Venezuelan military that those who continue to support Maduro “will find no safe harbor, no easy exit and no way out”. He warned them “You will lose everything.”

The US government claims it is being blocked from delivering $20m in aid to Venezuela just across from the aforementioned Colombian border city of Cúcuta, the site of Branson’s Live Aid concert. While the US attempts to deliver aid along a bridge that has never been used before, it is enforcing economic sanctions that are costing the Venezuelan people $30m a day. Branson’s Venezuela Live Aid is being promoted as an attempt to convince Maduro to accept the aid.

Venezuelan Live Aid (BBC)

With his hopes that the Venezuelan military would defy Maduro, it is interesting that Branson has lent credibility to the Western attempt to overthrow Maduro. There are dozens of impoverished nations around the world that are run by much more dictatorial figures that could use Branson’s support. What distinguishes Venezuela from the rest of the world is that it sits on the largest proven oil reserves in the world. In 2007, Venezuela effectively nationalized their oil industry and expropriated assets from Western oil firms. As such, Venezuela’s massive oil reserves remain off limits to Western nations and their businesses.

Virgin Oil

Branson has long been concerned about the worlds oil supply. In 2010, Branson warned about an impending “oil crunch”, whereby a decrease in the worlds oil supply would result in crippling economic conditions. Branson’s concerns about the supply of oil are directly related to his business activities. Branson’s investments in the airline and transport industries are particularly sensitive to the price of oil.

In 2012 when oil prices were at recent peaks, Virgin Airlines posted a massive loss. Virgin bosses blamed “sky high fuel prices” for Virgins poor performance. In 2016, oil prices crashed, and Virgin Airlines profits soared. Virgins sensitivity to oil prices even led Branson to consider a move into the oil industry.

Average annual oil prices (USD) (Statista.com)

Branson’s net worth is estimated at $4.1 billion. The majority of Branson’s net worth is tied up in his ownership of Virgin. Therefore Branson’s net worth is intimately connected to the international oil supply. A tightening of the worlds oil supply drives up oil prices which negatively impacts Branson’s net worth. With the price of oil expected to rise in 2019 due to a contraction of supply, Branson can expect a drop in his companies performance and his net worth. Branson may not be an oil tycoon, but his success is directly tied to the oil industry.

Virgin Air America

With a rise in oil prices on the horizon, Venezuela’s massive oil reserves have become an attractive potential investment. Unfortunately, under the Maduro regime those reserves are currently off limits to the West. If the Venezuelan oil fields were opened up to western oil companies, there would be less upward pressure on oil prices. The opening of the Venezuelan oil reserves would stave off higher oil prices for the foreseeable future and would benefit companies whose success is tied to oil prices.

Branson’s Live Aid concert lends cultural legitimacy to the US claim to be merely delivering aid to the Venezuelan people. Meanwhile US National Security Advisor John Bolton has admitted that the ultimate goal of regime change is to liberalize and deregulate Venezuela’s oil industry. A US airfreight company was recently revealed to be smuggling US military grade weapons and supplies to Venezuela. Presumably destined for the US backed Venezuelan opposition.

Western nations, with support from Colombia and Brazil, are circling Venezuela. Perhaps their intentions are truly humanitarian. However, many would benefit financially from the liberation of the massive Venezuelan oil reserves. It would no doubt help along those invested in the airline industry as they stare down a year of rising fuel prices.