US President Donald Trump has stated that the United States would effectively “run” Venezuela until a political transition is completed, while leveraging the country’s extensive oil reserves to supply global markets.
Speaking to reporters shortly after reports emerged of Venezuelan President Nicolas Maduro and his wife being captured, Trump said major American oil companies would invest billions of dollars to repair what he described as Venezuela’s “badly broken infrastructure.” He claimed that any US involvement in the country would be self-financing, with oil revenues covering operational costs.
“Venezuela holds the largest proven oil reserves in the world. We will take back the oil that, frankly, we should have taken back a long time ago,” Trump said, arguing that the initiative “will not cost a penny” due to potential revenue from oil production.
Industry Response and Practical Challenges
At present, Chevron is the only US energy firm still operating in Venezuela, while other major American oil companies, including ExxonMobil and ConocoPhillips, have not publicly commented on Trump’s remarks. Chevron confirmed it continues to operate in compliance with all applicable laws, prioritising employee safety and asset integrity.
Analysts, however, caution that reviving Venezuela’s oil sector would be complex and costly. Years of underinvestment, corruption, and infrastructure decay have left the industry in poor condition. Peter McNally of research firm Third Bridge noted, “It will take tens of billions of dollars to turn it around.”
The US produces mainly light crude, while Venezuelan reserves consist largely of heavy crude, which requires more expensive and complex refining. Many American refineries are not equipped to process such crude efficiently, meaning that even with increased Venezuelan supply, refinery upgrades would be necessary, adding to costs.
Venezuela’s Oil Context
Venezuela is estimated to hold roughly 303 billion barrels of proven oil reserves, about 17 per cent of global totals, primarily concentrated in the Orinoco Belt. While production peaked at 3.5 million barrels per day in the 1970s, output dropped to an average of 1.1 million barrels per day last year, representing just one per cent of global production.
Sanctions, chronic underfunding, and systemic corruption have hindered Venezuela from fully exploiting its reserves, unlike oil-rich Gulf states such as Saudi Arabia. Most of its exports now flow to China, whereas the US was once a major buyer.
Despite these challenges, Trump reiterated his goal of reviving Venezuelan oil production to serve global demand, underscoring the country’s strategic importance to energy markets.
