American oil companies have long eyed the recovery of assets seized by Venezuela’s government decades ago. Now, the Trump administration is offering a path — with one key condition: companies must be ready to invest heavily in reviving Venezuela’s crumbling oil infrastructure.
Officials told POLITICO that executives were advised over the past 10 days that compensation for rigs, pipelines, and other nationalized property would come only if they immediately return to Venezuela and help restore production. Yet, many in the industry remain cautious due to the poor state of infrastructure and uncertainty over who will govern the country.
“They’re saying, ‘you gotta go in if you want to play and get reimbursed,’” said one executive familiar with the talks. “But the infrastructure is so dilapidated that no one can fully assess what’s needed to make it operable.”
In a televised address Saturday, President Trump said he expects U.S. oil companies to invest billions in rebuilding Venezuela’s petroleum sector. “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, and start making money for the country,” he said.
Venezuela’s oil sector has suffered from decades of mismanagement. Nationalized in the 1970s and further seized under former President Hugo Chávez, the country holds some of the world’s largest reserves but produces far less than its historic peak of 3.5 million barrels per day.
Industry experts and former officials say the administration has yet to outline a clear, long-term plan. Bob McNally, a former national security and energy adviser to President George W. Bush, noted that it remains uncertain how a post-Maduro government would be structured and how investments would be secured.
Key concerns include safety for personnel and assets, payment guarantees, profitability under current oil prices, and Venezuela’s OPEC membership. U.S. benchmark oil recently hit $57 per barrel.
Chevron, the only major U.S. company still operating in Venezuela under a special license, said it continues to prioritize employee safety and compliance with laws and regulations.
Meanwhile, Evanan Romero, a Houston-based consultant working to strategize U.S. oil reentry, said Maduro’s capture lays the groundwork for American companies to return soon. A committee of roughly 400 former Venezuelan state oil employees is evaluating the role of a new government in the sector, including whether to maintain state control or allow full private-market operations.
Carrie Filipetti, a former State Department official, stressed that orderly political transition is crucial. “It’s not just about getting rid of Maduro,” she said. “It’s also about making sure the legitimate opposition comes into power.”
Financial incentives could help coax companies back, according to Richard Goldberg, former head of the White House National Energy Dominance Council, including underwriting from the Export-Import Bank and the U.S. International Development Finance Corporation. A strong U.S. presence could also limit China’s influence in the Venezuelan oil market.
Despite interest, analysts say the venture remains a long-term play. Low oil prices, decayed infrastructure, and political risk make immediate reentry challenging, though Venezuela’s reserves could become a strategic asset as U.S. domestic oil production declines.
“Venezuela would be a crown jewel if the above-ground risk is removed,” said Landon Derentz of the Atlantic Council. “Companies are watching closely, but it’s not yet a ripe opportunity.”
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