The White House has informed major U.S. oil companies that to receive compensation for assets expropriated by Venezuela two decades ago, they must return and invest substantial capital to revive the country's crippled oil industry. This directive follows President Donald Trump's announcement on Saturday that U.S. forces captured Venezuelan President Nicolás Maduro in an operation in Caracas.
Trump accused Venezuela of stealing American-built oil assets worth over $17 trillion and stated that control of the country's vast oil and gold reserves would shift to the United States. He confirmed that U.S. oil companies would now step in to rebuild production infrastructure while the U.S. temporarily manages Venezuela. "We're going to have our very large United States oil companies… go in, spend billions of dollars," Trump told reporters, claiming the Venezuelan oil industry was originally an American creation later "stolen" by the socialist regime.
The move heavily impacts companies like ConocoPhillips and ExxonMobil, which exited Venezuela after the expropriations under then-President Hugo Chávez in the 2000s. ConocoPhillips has spent nearly $12 billion following the nationalization, while ExxonMobil has sought arbitration to recover approximately $1.65 billion for lost income. Chevron, which negotiated to remain through joint ventures with state-owned PDVSA, is the only U.S. oil company with a limited operating license currently.
The U.S. oil embargo on Venezuela remains "in full effect," with Trump stating the U.S. will manage global sales of Venezuelan oil, including to potential buyers like China and Russia. Venezuela holds the world's largest oil reserves, estimated at 300 billion barrels, but its output has plummeted to about 1.1 million barrels per day due to mismanagement, lack of investment, and sanctions. The U.S. Energy Information Administration estimates restoring production would require over $8 billion in investment.
Analysts warn that any return by oil companies would depend on risk assessments by executives and shareholders, facing challenges including unclear contract rules, security risks, weak infrastructure, and long-term political instability. China's Ministry of Foreign Affairs has criticized the U.S. operation as a violation of international law and Venezuela's sovereignty.
