One month before Maduro was forcibly controlled, Trump had "spoiled" to oil giants: Be prepared.
About a month before Venezuelan strongman Maduro was arrested, U.S. President Trump sent a vague but enticing message to several American oil executives: “Be ready.”
On January 6, according to media reports, sources revealed that although Trump hinted at a major change coming to Venezuela at the time, he did not disclose the specific details of the raid on Caracas nor did he seek their advice on the energy revival plan announced that day.
According to CCTV News, in the early hours of January 3, the United States launched a large-scale military attack on Venezuela, forcibly took control of Maduro and his wife and brought them to the U.S. On the 6th local time, Venezuelan President Maduro and his wife Flores, who were forcibly taken control of by the U.S., appeared for the first time in the U.S. District Court for the Southern District of New York, pleading “not guilty” to the so-called charges.
The report stated that on the day of the operation, the Trump administration announced a plan calling for American energy companies to invest billions of dollars to renovate Venezuela’s decaying oil fields. At a press conference in Mar-a-Lago, Trump said the U.S. would send “the world’s largest oil companies” into Venezuela to repair severely damaged oil infrastructure.
The market responded positively to this prospect. On Monday, Chevron’s stock price rose about 5%, ExxonMobil rose about 2%, and ConocoPhillips rose nearly 3%. Investors seem optimistic about Venezuela potentially becoming a new frontier for American oil companies.
However, despite the Trump administration’s ambitions, the major U.S. oil companies most capable of investing in Venezuela have so far made no commitments. Before deciding whether to enter, these companies need to assess multiple factors such as political stability, contract guarantees, capital repatriation, and competition with returns from their global investment portfolios.
Oil giants like Chevron remain cautious
According to reports, White House Press Secretary Karoline Leavitt said on Monday that Trump looks forward to working with American oil companies on new investment and opportunities in Venezuela. A senior White House official revealed that Energy Secretary White and Secretary of State Rubio are leading this effort on Trump’s behalf, and communications with oil companies have already begun.
As the only major American oil company still operating in Venezuela, Chevron plays a key role in Trump’s plan. However, reports indicate that, according to informed sources, Chevron currently has no plans to significantly increase spending or dramatically boost production. A Chevron spokesperson stated:
"Chevron continues to focus on the safety and well-being of its employees and the integrity of our assets. We continue to operate in full compliance with all applicable laws and regulations."
Sources stated that Chevron does have detailed plans for expanding its business in Venezuela under certain circumstances. But to advance these plans, the company needs relative certainty that employees can operate safely in the country and that funds can be transferred out. At present, Chevron prefers to maintain its current production levels and is focused on ensuring local employee safety.
The other two American oil companies with the scale and heavy oil extraction expertise capable of investing in Venezuela—ConocoPhillips and ExxonMobil—have not yet indicated plans to re-enter the country.
Pickering Energy Partners Chief Investment Officer Dan Pickering said that the lack of immediate new investment willingness by major oil companies may be a significant blow to the Trump administration’s attempt to reform the Venezuelan government.
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