President Donald Trump has stated that he will permit major U.S. oil companies to enter Venezuela and develop its vast crude oil reserves following the military operation that led to the capture of Venezuelan leader Nicolás Maduro.
Speaking at a news conference on Saturday, Trump announced, “We’re going to have our very large United States oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country.”
He emphasized that the embargo on Venezuelan oil remains in effect, but that American firms would be authorized to rehabilitate the country’s struggling oil sector, which has been under U.S. sanctions since 2019.
Background on Venezuela's Oil Sector
Venezuela possesses roughly 17% of the world’s oil reserves, but production has plummeted to under one million barrels per day due to years of mismanagement, corruption, and sanctions. Much of its oil is sold at a discount on the black market. The U.S. has long accused the Maduro government of using oil revenue to finance illicit activities.
Trump also noted that Chevron—the sole U.S. company previously granted an exemption—already operates several oil fields in Venezuela through partnerships with the state-owned PDVSA.
The move signals a strategic shift aimed at revitalizing Venezuela's oil industry under U.S. oversight, while maintaining economic pressure on the former Maduro administration.
Posts
0 Comments