Washington (Parliament Politics Magazine) – US President Donald Trump says American oil firms could be “up and running” in Venezuela within 18 months following President Nicolas Maduro’s removal.
As reported by Kayla Epstein of the BBC, President Trump says US oil firms could resume operations in Venezuela within 18 months after a US military operation ousted President Nicolás Maduro.
What did President Trump say about US oil firms operating in Venezuela?
During an interview, President Trump said,
“A tremendous amount of money will have to be spent, and the oil companies will spend it, and the oil companies will spend it, and then they’ll get reimbursed by us or through revenue.”
Major US oil firms’ executives plan meetings with the Trump administration later this week, according to CBS News.
According to experts, Venezuela’s oil production may take billions of dollars and up to ten years to recover.
President Trump’s comments came after his claim that the US would “run” Venezuela following Nicolás Maduro’s ousting and transfer to the US for criminal proceedings.
Speaking to NBC, he said oil production may accelerate faster than 18 months but would require significant investment.
President Trump outlined plans for US oil firms to expand operations in Venezuela, adding,
“Having a Venezuela that’s an oil producer is good for the United States because it keeps the price of oil down.”
Mr Trump recently claimed American companies can repair Venezuela’s oil facilities, which hold the world’s largest proven reserves at 303bn barrels.
The Trump administration views Venezuela’s oil as a major US energy opportunity, but development is costly, heavy crude is hard to refine, and Chevron is the only American operator.
When questioned about President Trump’s proposals for US oil production in Venezuela, Chevron spokesman Bill Turenne said the firm
“remains focused on the safety and wellbeing of our employees, as well as the integrity of our assets.”
He added,
“We continue to operate in full compliance with all relevant laws and regulations.”
Major US firms Exxon and ConocoPhillips have yet to respond as Mr Trump claims Venezuela “unilaterally seized and stole American oil.”
Experts warned that President Trump’s plans are unlikely to quickly affect global oil supply or prices, noting that companies need stable governance and long-term investment.
Vice President JD Vance claimed on social media that
“Venezuela expropriated American oil property and until recently used that stolen property to get rich and fund their narcoterrorist activities.”
American oil firms have long operated in Venezuela under licence agreements, but the government nationalised the industry in 1976 and expanded state control over foreign assets under President Hugo Chavez in 2007.
A 2019 World Bank ruling ordered Venezuela to pay ConocoPhillips $8.7bn for its 2007 nationalisation. The sum remains unpaid, with the US firm still owed money.
Ben Chu of BBC Verify described claims that Venezuela “stole” US oil as misleading, with experts saying the oil was always Venezuelan property.
Which US oil Companies are operating in Venezuela?
Chevron is the sole major US oil company active in Venezuela, running joint ventures with state-owned PDVSA that contribute heavily to national output.
American oil giant ExxonMobil has no current operations in Venezuela, after the 2007 expropriation of its assets and ongoing claims for repayment.
ConocoPhillips remains absent from Venezuela following the 2007 expropriation, maintaining the largest pending arbitration claims against the government.
Who’s in charge of Venezuela after Maduro’s capture?
After US forces captured Nicolás Maduro, Venezuela’s Supreme Court appointed Delcy Rodríguez as interim president. She took office on January 5, having served as Executive Vice President since 2018 and next in line constitutionally.
Power largely remains with Maduro’s inner circle, including longtime loyalist Delcy Rodríguez. Her brother Jorge Rodríguez, head of the National Assembly, and top military officials continue to wield significant influence in Venezuela.
Which country holds the largest proven oil reserves?
- Venezuela – 303bn barrels
- Saudi Arabia – 267bn barrels
- Iran – 209bn barrels
- Iraq – 145bn barrels
- UAE – 113bn barrels
- Kuwait – 102bn barrels
- Russia – 80bn barrels
- Libya – 49bn barrels
- US – 45bn barrels
- Nigeria – 37bn barrels
- China – 28bn barrels
- Qatar – 25bn barrels
- Brazil – 16bn barrels