White House pitches U.S. majors on rebuilding Venezuela’s “rotting” energy industry, but investors warn of political risk and call the country “uninvestable.”
Washington: U.S. President Donald Trump has placed oil at the heart of his Venezuela strategy, urging American energy giants to pour $100 billion into reviving the South American nation’s crumbling energy sector.
At a high‑stakes White House meeting on Friday, Trump told executives from Exxon, Chevron, Vitol, Trafigura, and other firms that Venezuela’s vast reserves — the largest in the world — could be unlocked to deliver “oil production to levels never, ever seen before.” He promised U.S. guarantees of physical and financial security for companies willing to take the plunge.
The pitch comes days after U.S. forces seized Venezuelan leader Nicolás Maduro in a dramatic raid on Caracas, clearing the way for interim authorities to sign a deal to supply 50 million barrels of crude to U.S. refineries.
Trump hailed the agreement as the first step in a long‑term partnership that he says will lower American energy prices and cement U.S. influence over Venezuela’s oil revenues.
But industry leaders remain wary. Exxon CEO Darren Woods bluntly described Venezuela as “uninvestable,” citing repeated asset seizures and political volatility.
“To re‑enter a third time would require some pretty significant changes,” Woods said, though he added that cooperation with Trump’s administration could eventually create conditions for a return.
Smaller independents and private equity‑backed firms, some with ties to Energy Secretary Chris Wright’s home state of Colorado, struck a more optimistic tone, praising Trump’s aggressive push and signaling readiness to invest.
Wright himself floated the possibility of using the U.S. Export‑Import Bank to underwrite projects, reducing financial risk for investors.
Decades of underinvestment have left Venezuela pumping barely a third of the 3.5 million barrels per day it produced in the 1970s.
Analysts warn that rebuilding the sector will require not only capital but also political stability — a commodity in short supply as critics accuse Washington of “extortion” and Venezuelans grapple with the fallout of Maduro’s capture.
For Trump, the formula is simple: secure commitments, channel investment, and split the returns between Venezuela, the United States, and the companies.
For investors, the calculus is far more complex — weighing the lure of the world’s largest reserves against the risks of entering a market still scarred by seizures, sanctions, and uncertainty.
