Trump Presses U.S. Oil Giants to Invest $100 Billion in Venezuela’s Crumbling Energy Sector
GeokHub
GEOKHUB | Washington — Jan 9 U.S. President Donald Trump on Friday urged America’s largest oil companies to commit as much as $100 billion to rebuild Venezuela’s deteriorating energy industry, pitching the effort as a strategic move to boost oil output and drive down U.S. fuel prices.
Speaking at the White House alongside executives from Exxon Mobil, Chevron, ConocoPhillips and other major energy firms, Trump said Venezuela’s oil sector had been left to decay after decades of underinvestment and mismanagement.
“American companies will have the opportunity to rebuild Venezuela’s rotting energy infrastructure and increase production to levels never seen before,” Trump said.
Oil at the Center of U.S. Strategy on Venezuela
The meeting comes just days after U.S. forces captured Venezuelan leader Nicolás Maduro in a military operation in Caracas, a move that has reshaped Washington’s approach to the oil-rich South American nation.
Trump has made oil the cornerstone of his Venezuela strategy, highlighting an agreement with interim Venezuelan authorities to supply 50 million barrels of crude oil to the United States — deliveries he said could continue indefinitely.
With many U.S. refineries designed specifically to process Venezuelan crude, Trump argued the arrangement would help stabilize domestic energy markets.
“One of the benefits for the United States will be even lower energy prices,” he said.
Investor Caution Persists
Despite the administration’s push, major oil producers remain cautious.
Exxon Mobil CEO Darren Woods described Venezuela as currently “uninvestable,” citing past asset seizures and political risk.
“Our assets were nationalized twice,” Woods said. “Re-entering would require major structural changes and strong guarantees.”
Exxon and ConocoPhillips exited Venezuela nearly two decades ago following nationalization under previous governments.
Chevron, however, struck a more optimistic tone. As the only U.S. oil major still operating in Venezuela, the company said it remains committed to investment under the right regulatory framework.
Security Guarantees and Financial Backing
Trump told executives that the U.S. government would guarantee both the physical and financial security of companies investing in Venezuela, though he did not offer detailed terms.
Energy Secretary Chris Wright added that Washington is considering using the U.S. Export-Import Bank to help finance large-scale oil projects — a move that could reduce investor risk and unlock private capital.
A Sector in Decline, With Massive Reserves
Venezuela holds the largest proven oil reserves in the world, yet currently produces only about 1% of global supply. Output has fallen dramatically from a peak of 3.5 million barrels per day in the 1970s due to sanctions, infrastructure decay and lack of investment.
While some smaller and private equity-backed firms signaled readiness to move quickly, analysts warn that political instability and shifting policy could complicate long-term commitments.
Trump, however, framed the plan in blunt terms.
“We get them to invest, we get the money back fast,” he said. “Then we split the rewards between Venezuela, the United States, and the companies. The formula is simple.”
