US President Donald Trump has told US and international energy executives that the United States will determine which oil firms are allowed to operate in Venezuela’s petroleum sector, as part of a broader strategy to harness the South American nation’s vast crude reserves following a recent military action there.
Speaking at a White House meeting with leaders from major energy companies, Trump said that Venezuela’s interim authorities have agreed to “turn over” up to 50 million barrels of previously sanctioned oil to the United States. He said the barrels would be sold at market prices and that proceeds would be managed in a way intended to benefit both Americans and Venezuelans.
The announcement comes just days after US forces launched strikes in Venezuela and captured former President Nicolás Maduro. Since then, Trump has repeatedly tied the military operation to access and control over Venezuelan oil, which is among the largest in the world.
Meeting With Oil Executives
At the Oval Office gathering, Trump outlined plans for US companies to invest heavily in repairing Venezuela’s oil infrastructure, which has deteriorated in recent decades due to mismanagement and sanctions. Officials said American firms, backed by private capital, could spend billions to refurbish wells, pipelines and refineries in order to restore production.
Trump emphasised that the US government would exercise oversight over which companies are awarded rights to operate in the country’s oil fields. “We will decide who goes in and who can extract oil,” he told the executives, signalling a more direct role for Washington in shaping Venezuela’s energy sector.
US Energy Secretary Chris Wright and other senior officials attended the meeting, which included representatives from large oil companies such as Chevron, ExxonMobil, Shell and ConocoPhillips. Trump also spoke about the potential for roughly $100 billion in total investment to rebuild Venezuela’s energy infrastructure, though industry leaders have expressed caution about the cost, legal risks and political uncertainty.
Venezuela’s Oil Future
Venezuela’s crude oil reserves are among the largest in the world, but production has declined sharply in recent years due to economic mismanagement, underinvestment and sanctions. Trump has argued that increased US involvement could help stabilise global energy markets while lowering fuel costs domestically.
However, analysts warn that even with significant investment, reviving Venezuela’s oil output will take many years. Infrastructure damage is extensive and the extra-heavy crude produced in the country is more difficult and costly to refine than lighter grades. Some experts also say that uncertainty around governance and legal protections for foreign investors could deter large-scale commitments by major firms.
Debate Over Oversight and Sovereignty
Critics of the Trump administration’s approach argue that Washington’s assertion of control over Venezuela’s oil sector raises questions about national sovereignty and long-term stability. Supporters say the strategy could revitalise a struggling economy and weaken illicit networks tied to the former Maduro government.
The US role in deciding which companies operate in Venezuela is unprecedented in recent times, and the situation is likely to remain in focus as global markets and political leaders react to the evolving relationship between the two countries.