> At a Glance
> – President Trump says U.S. firms could revive Venezuela’s oil fields in under 18 months
> – Companies would front “tremendous” costs, paid back later by U.S. or future revenue
> – Gas prices already sit at a 3-year low of $2.81 a gallon
> – Why it matters: Cheaper crude could cut pump prices further, but firms must weigh past seizures and sanctions before investing
President Trump told News Of Philadelphia he believes American oil companies can restore Venezuela’s battered production within 18 months, though the price tag will be steep and repayment terms remain unsettled.
The Revival Plan
Oil firms would bankroll repairs to aging wells and pipelines, then recoup the cash either from the U.S. government or from future crude sales, Trump said in an interview Monday.
> President Trump said:
> “A tremendous amount of money will have to be spent, and the oil companies will spend it, and then they’ll get reimbursed by us, or through revenue.”
He refused to name a dollar figure but called the total “very substantial.” Trump argues more Venezuelan barrels will push global prices lower, helping U.S. drivers while giving companies healthy profits.
Industry Skepticism
Despite White House claims that producers “want to go in so badly,” the three biggest U.S. players are non-committal:
- Exxon Mobil – no response to questions; CEO Darren Woods recently cited two past expropriations
- Chevron – said it doesn’t speculate on future investments
- ConocoPhillips – declined comment
All three firms lost assets when Venezuela nationalized oil fields in the 1970s and again in 2006-07. Sanctions and the weekend military operation that captured Nicolás Maduro add fresh risk.
| Event | Impact on U.S. Firms |
|---|---|
| 1970s nationalizations | Exxon, Conoco assets seized |
| 2006-07 takeovers | Exxon, Conoco exit; Chevron stays under waiver |
| Current U.S. sanctions | Limited legal avenues for new investment |
Energy Secretary Chris Wright will meet Exxon and Conoco executives this week to discuss rebuilding infrastructure, Bloomberg reports.
Key Takeaways
- Trump timeline: under 18 months to restore output
- Funding model: companies pay now, reimbursed later
- Gas price upside: extra supply could trim already-low $2.81 national average
- Biggest hurdle: industry memory of seized assets and uncertain policy future
The administration’s outreach to oil majors is just beginning, with no formal briefings before Saturday’s surprise arrest of Maduro.
