Trump predicts US oil firms operating in Venezuela within 18 months

Wednesday 07 January 2026 - 16:50

By: Dakir Madiha

Trump predicts US oil firms operating in Venezuela within 18 months

President Donald Trump announced this week that American oil companies could begin operations in Venezuela within 18 months, as his administration ramps up initiatives to revive the South American nation's battered petroleum industry following the arrest of President Nicolás Maduro over the weekend.

Energy Secretary Chris Wright, speaking Wednesday at Goldman Sachs' energy conference in Miami, revealed that the United States plans to oversee Venezuelan oil sales indefinitely and has started talks with major oil firms about the conditions for their entry. Wright explained that the initial focus will be on supplying essential chemicals to process Venezuela's heavy crude oil, followed by collaboration with local authorities to deploy equipment for larger-scale activities.

Oil industry leaders remain cautious despite pressure from the White House. Executives from Chevron, ConocoPhillips, and ExxonMobil are scheduled to meet Trump and administration officials at the White House on Friday to discuss Venezuela's oil sector. Wright held discussions with some company representatives during the Miami conference.

Industry sources told various media outlets that firms demand security assurances, favorable contracts, and resolution of billions in unpaid compensation before committing investments. ConocoPhillips seeks $8.7 billion for the 2007 nationalization of its assets, while ExxonMobil pursues $1.6 billion. Outstanding arbitration claims against Venezuela could total $20 billion to $30 billion.

Reviving Venezuela's oil infrastructure to historical production levels would require tens of billions of dollars and significant time, according to Wright and sector analysts. Current output hovers between 800,000 and 1 million barrels per day, far below the 1990s peak of 3.5 million barrels. Experts project annual costs of $10 billion over a decade to boost production, with some estimates reaching $183 billion to fully restore capacity. Goldman Sachs analysts noted that gains beyond 300,000 to 400,000 barrels per day will prove challenging short-term due to deteriorated facilities.

Trump told NBC News that oil companies would front the initial funds and receive reimbursement from the US government or through revenues, signaling a potential expansion of federal support beyond earlier statements that firms would fund investments independently.