UPDATE: President Donald Trump is meeting with Big Oil executives today in a high-stakes discussion aimed at reviving U.S. investment in Venezuela‘s beleaguered oil sector. As part of a weeklong effort to charm America’s largest energy companies, Trump hopes to entice them to restore Venezuela’s oil infrastructure, which has been devastated by years of mismanagement and political turmoil.
However, oil executives are approaching the meeting with skepticism. They are cautioning against making any firm investment commitments due to Venezuela’s current volatility. Insiders report that executives plan to express doubts about the feasibility of investing $10 billion annually over the next decade without a clear strategy for stability and rule of law from the Venezuelan government.
“They’re making this up as they go along,” stated a source close to the preparations. Trump and his aides have yet to present a convincing framework for ensuring the safety of investments and personnel in Venezuela, where rampant theft and political unrest have raised significant concerns.
“There are going to be parameters that have to be put in place before there’s a significant investment in Venezuela,” said Mike Summers, CEO of the American Petroleum Institute, during an interview on Fox News.
Today’s discussions come amid a backdrop of heightened interest from oil companies eager to tap into Venezuela’s abundant reserves, despite the risks. The country’s state-run oil company, Petróleos de Venezuela, SA (PDVSA), has been heavily influenced by military control, making the investment landscape even more precarious.
Industry insiders highlight that the restoration of Venezuela’s oil production to pre-socialism levels will require extensive infrastructure projects, including pipelines, drilling rigs, and reliable electricity sources. Experts estimate this process could exceed $10 billion a year and take over a decade to materialize.
“Oil companies aren’t going to be bullied into spending money in a risky country or with risky terms,” said Dan Pickering, founder of Pickering Energy Partners. This sentiment reflects a growing reluctance among executives to commit without firm guarantees from the Trump administration, which may only last as long as Trump’s presidency.
In preparation for today’s meeting, oil executives expressed concern that Trump may demand immediate commitments, rather than allowing for a measured approach. They plan to emphasize their potential to boost Venezuelan oil production significantly in the near term, contingent on the easing of key sanctions and support for the necessary logistics.
The Trump administration has indicated willingness to lift certain sanctions as a precursor for U.S. oil companies to return. However, Venezuela’s stringent laws governing foreign involvement—mandating public-private joint ventures with high royalty and tax rates—remain a major hurdle.
“Venezuela has a very unfavorable fiscal regime – why would you go to a place like that?” questioned Luisa Palacios, former chairwoman of Citgo and current director at Columbia University.
The challenges are compounded by Venezuela’s history of expropriating foreign assets; companies such as ExxonMobil are still seeking billions in compensation following asset seizures in 2007. “Exxon is going to remember what happened to it there,” warned Ryan Kellogg from the University of Chicago.
Amid these discussions, Secretary of Energy Chris Wright acknowledged the complexities involved, stating, “To make the very big, long-term investments, we’ve got to get the government in a better place where they’ve got secure rule of law and national security.”
Industry experts agree that while the risks are considerable, the potential rewards could be substantial under the right conditions. As Wright noted, there has been a “barrage” of interest from oil companies regarding opportunities in Venezuela, suggesting that the allure of its vast oil reserves cannot be ignored, even in a turbulent political climate.
As the meeting unfolds today, all eyes will be on Trump and the oil executives. Will they find common ground? The stakes are high, and the outcome could reshape the future of U.S.-Venezuela energy relations.
