Trump Pushes U.S. Oil Giants to Rebuild Venezuela’s Failing Energy Industry

Post by : Saif Nasser

U.S. President Donald Trump has urged some of the world’s largest oil companies to invest heavily in Venezuela and help rebuild what he called the country’s “rotting” energy industry. The call came during a meeting at the White House with top executives from major U.S. oil firms, including Exxon Mobil, Chevron, and ConocoPhillips.

Trump said he wants American oil companies to invest up to $100 billion in Venezuela to sharply increase oil production. He described oil as the center of his strategy for the South American nation after U.S. forces seized Venezuela’s leader, Nicolas Maduro, earlier this month.

According to Trump, U.S. companies could play a key role in restoring Venezuela’s damaged oil infrastructure, which has suffered from decades of underinvestment. He said increased production would benefit both countries, especially by lowering energy prices in the United States.

Venezuela holds the world’s largest proven oil reserves, but its production has fallen sharply over the years. In the 1970s, the country pumped more than 3.5 million barrels of oil per day. Today, it accounts for only about 1% of global oil supply. Poor maintenance, lack of investment, and political instability have badly damaged its energy sector.

Trump also praised an agreement that allows Venezuela to supply 50 million barrels of crude oil to the United States. Many U.S. refineries are designed to process this type of oil, and Trump said these shipments could continue for a long time. He argued that this would help keep fuel prices low for American consumers.

Despite Trump’s push, many oil companies remain cautious. Executives and investors are worried about Venezuela’s political stability and high investment risks. Exxon Mobil’s CEO said Venezuela is currently “uninvestable,” noting that the company’s assets were seized twice in the past. He said major changes would be needed before Exxon could consider returning.

Chevron, the only major U.S. oil company still operating in Venezuela, said it remains committed but is not rushing into large new investments. ConocoPhillips, which also left Venezuela years ago after asset seizures, is taking a careful approach as well.

Trump said the U.S. government would guarantee the safety and financial security of companies that invest in Venezuela, though he did not explain how this would work. U.S. officials have also suggested using government-backed financial tools to reduce risks for companies willing to invest.

At the same time, the U.S. continues to enforce an embargo on Venezuelan oil. American forces have seized several Venezuelan oil tankers in recent weeks. Trump administration officials say controlling Venezuela’s oil revenues is necessary to reduce corruption and criminal activity.

Some lawmakers and analysts have criticized this strategy, warning that it could increase instability. They say companies may hesitate to invest large sums without clear and lasting political reforms in Venezuela.

Trump said his goal is to secure firm commitments from oil companies and quickly recover investments. He suggested that profits would be shared between Venezuela, the United States, and the companies involved.

The talks highlight both the opportunity and risk in Venezuela’s oil sector. While the country’s vast reserves are attractive, long-term success will depend on political stability, clear rules, and trust from global investors.