Comprehensive Analysis of the Donroe Doctrine

Based on my research, the “Donroe Doctrine” is a 21st-century extension of the

energy policy, a geopolitical strategy officially revived by the U.S. Trump administration in December 2025 [1][2].

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The name “Donroe Doctrine” is a combination of “Don” (referring to the U.S. President) and “Monroe” (Monroe), making it a modern energy version of the 19th-century Monroe Doctrine [1].

Dimension	Traditional Monroe Doctrine (1823)	Donroe Doctrine (2025)
Core Objective	Prevent European powers from interfering in American affairs	Ensure the U.S.'s absolute control over energy supply chains in the Western Hemisphere
Strategic Focus	Military/political security	Energy security and geopolitical leverage
Scope of Application	Pan-American region	Focus on controlling key energy nodes and bottlenecks
Policy Nature	Exclude external forces	Reject the impacts of globalization, emphasize U.S. dominance [2]

The backdrop for the introduction of this doctrine stems from the lessons of the 1970s OPEC oil embargo, during which the U.S. suffered severe energy supply shocks, soaring inflation, and economic recession [1].

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The direct trigger for the Donroe Doctrine is the

:

• Energy Value
  : Venezuela holds the world’s largest proven oil reserves (approximately 303 billion barrels), more than 6.5 times that of the U.S. [2]
• Geopolitical Conflict
  : Under U.S. sanctions, Venezuela has allied with China, Russia, Iran, and other countries, which fundamentally conflicts with the U.S.'s goal of regional dominance
• Policy Escalation
  : The U.S. carried out precision strikes and oil transport blockades against Venezuela as the first major practice of the Donroe Doctrine [1]

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Sector	Representative Companies	Rationale for Benefit
U.S. Oil Majors	Chevron, ExxonMobil, ConocoPhillips	Possess heavy crude oil processing technology and operational experience in sensitive political environments, expected to participate in Venezuela’s oil industry reconstruction [1]
Oilfield Services Companies	Schlumberger(SLB), Halliburton	Reconstruction of Venezuela’s oil infrastructure requires extensive services such as well operations, reservoir modeling, pipeline repair, etc. [1]
Gulf Coast Refiners	Valero, Phillips 66, Marathon Petroleum	These refineries are specifically configured to process heavy sour crude oil (originally designed for Canadian heavy crude), and can capture spread profits from low-priced Venezuelan crude [1]

Sector	Representative Companies	Rationale for Pressure
Canadian Oil Companies	Canadian Natural Resources, Suncor, Cenovus, Imperial Oil	Canadian crude has long enjoyed near-monopoly supply status to U.S. refiners; increased Venezuelan crude supply will erode its pricing power and profit margins [1]

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• Core Logic
  : Stable, moderately low oil prices (driven by increased regional supply) benefit large producers with low production costs and strong operational discipline
• Risk Warning
  : Volatility poses a greater threat to profits than stable low oil prices [1]

• Gulf Coast refiners have technological advantages in processing heavy crude oil, enabling them to convert crude oil discounts into refining margins
• Pay special attention to refiners with heavy crude processing capabilities such as Valero and Phillips 66 [1]

• Diesel Supply Risk
  : Venezuelan heavy crude oil is critical for diesel production; tight supply of middle distillates (diesel) could quickly push up inflation
• Allocation Recommendation
  : Consider a 10% portfolio allocation to gold (physical bullion + high-quality gold mining stocks), with annual rebalancing [2]

• Venezuela’s current crude oil production is approximately 1 million barrels per day (peak production reached 3 million barrels per day), and infrastructure recovery will take years
• Investors should prepare for increased short-term market volatility [1]

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Impact Dimension	Specific Performance
Supply Side	Increase sources of heavy crude oil supply in the Western Hemisphere, reduce dependence on external parties (such as OPEC)
Price Side	May depress heavy crude oil prices, but uncertainties exist in the middle distillates (diesel) market
Geopolitical Signal	Send a strong message to other countries in the Western Hemisphere that “energy security is national security”
Consumers	Benefit from stable fuel prices, reducing supply shocks and economic disruptions [1][2]

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The Donroe Doctrine represents a major shift in U.S. energy policy — from global energy dependence to

. For investors, this policy change means:

1. U.S. domestic energy assets
   will receive policy support and valuation premiums
2. Oilfield services and refining sectors
   will directly benefit from regional supply chain restructuring
3. Investors need to monitor changes in
   geopolitical risk premiums
   and adjust energy sector allocations accordingly

The above analysis is compiled based on public information and does not constitute investment advice.

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[1] Siebert AdvisorNXT - “Heavy Oil–Heavy Consequences–The Donroe Doctrine And Venezuela” (https://blog.siebert.com/heavy-oil-heavy-consequences-the-donroe-doctrine-and-venezuela)

[2] U.S. Funds - “Venezuela Oil Blockade Exposes a Hidden Weak Spot in Global Energy” (https://www.usfunds.com/resource/venezuela-oil-blockade-exposes-a-hidden-weak-spot-in-global-energy/)

[3] Financial Times - “Investors in US drillers go all in on the ‘Donroe doctrine’” (https://www.ft.com/content/2e2a95ca-61dc-4f79-8c36-f78016937367)