Trump Suggests US Oil Companies Could Resume Operations in Venezuela in 18 Months

Trump's Statements on the American Oil Industry in Venezuela

Donald Trump has claimed that the US oil industry could be "up and running" with increased operations in Venezuela within 18 months, following a surprise military operation that ousted President Nicolás Maduro from power. Trump stated in an interview with NBC News that "a huge amount of money will need to be spent, and oil companies will invest, and then they will be compensated by us or through revenues."

Representatives from major American oil companies are expected to meet with the Trump administration this week, CBS News reported, a partner of BBC. Analysts previously indicated that it could take tens of billions of dollars and potentially a decade to restore Venezuela's former production levels.

Trump's comments came just days after he mentioned that the US would "manage" Venezuela following Maduro's ousting, who is now in the US facing criminal charges. Trump speculated that oil production could resume "in a shorter time than that, but it will require a lot of money."

He was explicit about his ambitions for American oil companies to expand their operations in the country, stating that "a Venezuela that produces oil is beneficial for the United States as it keeps oil prices low." Analysts who spoke earlier with the BBC expressed skepticism that Trump's plans would have a substantial impact on global supply and thus on oil prices.

In recent days, Trump has claimed that American oil companies can repair Venezuela's oil infrastructure, which holds approximately 303 million barrels, the largest proven reserves in the world. However, the current output is only a fraction of this amount, and production has been in decline since the early 2000s.

The Trump administration sees significant potential for US energy prospects in Venezuela's reserves. Increasing oil production in the country would be costly for American firms, given that Venezuelan oil is heavy and more difficult to refine. Currently, only one American company, Chevron, operates in the country.

In response to questions regarding Trump's plans for oil production in Venezuela, Chevron spokesperson Bill Turenne noted that the company "remains focused on the safety and well-being of our employees, as well as the integrity of our assets." Major US energy companies, such as Exxon and ConocoPhillips, did not immediately respond to requests for comments.

While justifying Maduro's seizure from Caracas, Trump stated that Venezuela had "unilaterally requisitioned and stolen American oil." Vice President JD Vance echoed these claims after Maduro's capture, writing that "Venezuela expropriated American oil properties and, until recently, used these stolen assets to enrich themselves and fund their narcoterrorist activities." However, the reality is more complex, as energy law experts have indicated that oil found in Venezuela is owned by the government.

"Oil companies have the right to extract and market it based on a license/concession agreement," explained Ignacio Herrera Anchustegui from the University of Bergen, Norway. Venezuela nationalized its oil industry in 1976. In 2007, under President Hugo Chavez, Venezuela exerted greater control over foreign assets held by American oil companies operating in the country.