U.S. Push to Revive Venezuela’s Oil Industry Faces Skepticism from Big Oil Over $100 Billion Plan
President Trump urges American companies to commit capital to rebuild Venezuela’s crude sector, but executives caution the venture is fraught with legal, political and economic obstacles
President Donald Trump has outlined an ambitious plan to attract at least $100 billion in private investment from major U.S. oil companies to rebuild Venezuela’s oil industry, a strategy he unveiled in a White House meeting this week as Washington seeks to harness the country’s vast crude reserves following the overthrow of Nicolás Maduro.
Mr. Trump told executives from Exxon Mobil, Chevron, ConocoPhillips and other energy giants that the United States would provide guarantees of protection and that firms would be dealing directly with the U.S. government, not Venezuelan authorities, to ensure “total safety” for their capital.
The proposal is part of a broader effort to revive Venezuela’s energy production, which has collapsed to around one million barrels per day after decades of underinvestment, sanctions and mismanagement, and to align that revival with U.S. strategic interests in the Western Hemisphere.
However, industry leaders responded with caution; Exxon’s chief executive, Darren Woods, described Venezuela in its current legal and commercial state as “uninvestable,” noting that durable investment protections and significant reforms to hydrocarbon laws would be necessary before the company could commit funds to a reconstruction effort.
Other executives expressed interest but stressed the need for clear legal frameworks and political stability.
Analysts and energy experts say restoring Venezuela’s infrastructure to anywhere near its historic peak would require sustained investment of around $10 billion a year over the next decade, with total capital needs exceeding the $100 billion target and legal, logistical and regulatory hurdles remaining substantial.
The Trump administration’s push has also included executive action to protect Venezuelan oil revenues from judicial seizure and discussions with industry leaders about operational opportunities, while Secretary of State Marco Rubio has expressed confidence that U.S. firms could be eager to tap the country’s heavy crude reserves.
Despite this, the caution voiced by key executives reveals deep uncertainty about the viability of rapid reconstruction, even as Washington intensifies efforts to position the U.S. at the center of Venezuela’s energy future.
Mr. Trump told executives from Exxon Mobil, Chevron, ConocoPhillips and other energy giants that the United States would provide guarantees of protection and that firms would be dealing directly with the U.S. government, not Venezuelan authorities, to ensure “total safety” for their capital.
The proposal is part of a broader effort to revive Venezuela’s energy production, which has collapsed to around one million barrels per day after decades of underinvestment, sanctions and mismanagement, and to align that revival with U.S. strategic interests in the Western Hemisphere.
However, industry leaders responded with caution; Exxon’s chief executive, Darren Woods, described Venezuela in its current legal and commercial state as “uninvestable,” noting that durable investment protections and significant reforms to hydrocarbon laws would be necessary before the company could commit funds to a reconstruction effort.
Other executives expressed interest but stressed the need for clear legal frameworks and political stability.
Analysts and energy experts say restoring Venezuela’s infrastructure to anywhere near its historic peak would require sustained investment of around $10 billion a year over the next decade, with total capital needs exceeding the $100 billion target and legal, logistical and regulatory hurdles remaining substantial.
The Trump administration’s push has also included executive action to protect Venezuelan oil revenues from judicial seizure and discussions with industry leaders about operational opportunities, while Secretary of State Marco Rubio has expressed confidence that U.S. firms could be eager to tap the country’s heavy crude reserves.
Despite this, the caution voiced by key executives reveals deep uncertainty about the viability of rapid reconstruction, even as Washington intensifies efforts to position the U.S. at the center of Venezuela’s energy future.
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