U.S. Oil Executives Consider Venezuela Opportunities Amid Investor Caution
U.S. oil companies are carefully evaluating investment opportunities in Venezuela as they prepare for a high-profile White House summit on Friday, convened by President Donald Trump to discuss the country’s energy sector recovery. While the potential for revenue from Venezuela’s vast crude reserves is significant, investors and energy executives remain cautious due to political instability, infrastructure challenges, and past nationalization of assets.
Secretary of Energy Chris Wright reiterated claims from President Trump that U.S. oil firms could spend billions to rebuild Venezuela’s oil economy after U.S. forces removed Nicolás Maduro from power. However, private investors and analysts have expressed skepticism over the cost and risk of such ventures.
“Investors will want to see long-lasting stability and favorable fiscal terms to avoid the risk of asset nationalization, which Venezuela has historically pursued,” said David Byrns, portfolio manager at American Century Investments, a major shareholder in Chevron and Exxon Mobil.
Chevron and ConocoPhillips Take Cautious Approach
Executives from Chevron and ConocoPhillips, speaking at a private energy conference in Miami this week, signaled that while they were interested in Venezuelan opportunities, they would not rush into investments.
Industry sources note that Exxon and Conoco left Venezuela nearly 20 years ago, after the nationalization of their assets, leaving billions in unpaid claims. Chevron continues to operate in the country, but the risk/reward calculation remains delicate.
Geoffrey Pyatt, former Assistant Secretary of State for Energy Resources, noted:
“The tension is between the compelling geological resource and the obvious business opportunity, and the considerable above-ground risk, uncertainty, and unpaid claims.”
White House Summit to Encourage Investment
The White House summit, attended by Energy Secretary Chris Wright, Secretary of State Marco Rubio, Interior Secretary Doug Burgum, and executives from ConocoPhillips, Chevron, Exxon, Repsol, Vitol, and Trafigura, will focus on incentivizing U.S. oil firms to help restore Venezuela’s crude production.
A White House spokeswoman, Taylor Rogers, said:
“The American people, energy companies, and the Venezuelan people will all greatly benefit from these new, unprecedented investments in Venezuela’s oil infrastructure thanks to President Trump.”
Infrastructure Challenges and Early-Stage Planning
Former Chevron executive Ali Moshiri, now CEO of Amos Global Energy, confirmed that his firm is in early-stage talks with U.S. government departments for funding and with service companies to repair pipelines and restore production infrastructure. He emphasized that investment plans would depend on clarity regarding who manages the transitional government in Venezuela.
Matthew Sallee of Tortoise Capital cautioned investors, noting that while there is strong interest in Venezuelan oil, the country’s dilapidated infrastructure and political uncertainties could significantly affect returns.
Service companies, including Helmerich & Payne, have also warned that timing and partnerships are critical to safely delivering rigs and services to Venezuelan oil fields.
Political and Financial Uncertainty Remains
The U.S. has outlined a three-phase plan for Venezuela, according to Rubio:
- Stabilization
- Recovery phase – ensuring U.S. oil firms access to operations
- Transition phase
Despite these plans, oil executives face questions about regulatory clarity, permit issuance, and the potential for government pressure to invest quickly. Samantha Carl-Yoder of Brownstein Hyatt Farber Schreck noted:
“Companies may feel they have to go back in to get things they want in other areas. Will the administration hold permits and licensing hostage? Will there be financial incentives?”
The outcome of these discussions will be critical for U.S. oil companies deciding how to balance the enormous geological potential in Venezuela with the political and operational risks.
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