Here's a geopolitical development with serious energy market implications: President Donald Trump announced Saturday that US oil companies are lining up to pour billions into Venezuela's oil industry, now that Nicolas Maduro is out of the picture.
The pitch is straightforward: rebuild Venezuela's crumbling oil infrastructure and get revenue flowing again for a country that should be an energy powerhouse. And Venezuela absolutely should be an energy powerhouse. As a founding member of OPEC, the South American nation sits on the world's largest proven oil reserves, with 303 billion barrels accounting for 17% of global reserves.
Right now, Chevron is the only major US oil firm with boots on the ground in Venezuela, shipping approximately 140,000 barrels per day in Q4 2025. The company has said it remains committed to protecting its workforce and assets, according to CNBC.
The political shift came after US forces captured Maduro and his wife, Cilia Flores, following a large-scale military operation. Both face drug-trafficking charges in the Southern District of New York.
Trump revealed that the US, working with an unspecified group, will temporarily manage Venezuela, though he didn't elaborate on details. This follows an extended period of US military buildup in the Caribbean region.
Despite the ongoing embargo on Venezuelan oil, Trump confirmed that oil companies will directly finance the reconstruction of Venezuela's crude infrastructure. "They will be reimbursed for what they're doing," Trump said.
"We're going to get the oil flowing the way it should be. We'll be selling large amounts of oil to other countries, many of whom are using it now, but I would say many more will come," Trump added.
The Scale of Venezuela's Oil Collapse
Venezuela's oil production has cratered since peaking in the late 1990s. The country currently produces around 800,000 barrels per day, a dramatic decline that stands in stark contrast to US production of 13.8 million barrels per day.
This investment could potentially breathe new life into Venezuela's struggling oil industry and provide a much-needed boost to its battered economy. For a country sitting on the world's largest oil reserves, the upside potential is enormous if the infrastructure can be rebuilt and operations stabilized.