Major American oil companies have responded with notable silence to President Trump’s claims that they’re prepared to spend billions reconstructing Venezuela’s oil industry. The conspicuous absence of corporate confirmation for Trump’s enthusiastic predictions raises questions about alignment between the administration and energy sector.
Trump described an extensive plan where major US oil firms would enter Venezuela to repair “badly broken infrastructure,” modernize massive reserves, and dramatically boost production. He suggested these companies would be compensated for their investments and would help Venezuela expand international oil sales, though specifics remained vague.
Corporate reactions have been deliberately nonspecific. Chevron emphasized compliance and employee safety without addressing expansion plans. ExxonMobil declined to comment on Venezuelan prospects entirely. ConocoPhillips cautioned that speculation about future Venezuelan business would be premature, suggesting these firms maintain significant reservations.
Venezuela’s oil sector presents a complex proposition. While holding approximately 17% of global reserves, the country has seen production plummet to about 1 million barrels daily from historical peaks of 3.5 million due to systematic mismanagement, corruption, and underinvestment. Restoring output to 2 million barrels daily would require an estimated $110 billion.
The shadow of nationalization adds further complication. Venezuela seized private oil operations in 2007, prompting departures and legal battles that resulted in substantial arbitration awards for ExxonMobil and ConocoPhillips—money that Venezuela’s struggling economy has largely failed to deliver. Analysts note that companies will want solid stability guarantees before committing major resources.