Show Me the Money (and Legal Protection)

President Donald Trump wants American oil companies to pour money into Venezuela's battered energy sector. The oil companies? They're not exactly jumping at the opportunity, according to a Financial Times report published Thursday.

Here's the problem: Venezuela isn't known for stable, predictable policymaking. It's known for the opposite. So when Trump suggests U.S. oil firms could be "reimbursed" for their investments, executives are understandably skeptical about what that actually means in practice.

The White House has summoned top energy executives for a Friday meeting, where they're expected to push for concrete legal and financial safeguards before committing serious capital. The administration has signaled it may ease some sanctions and allow American oilfield services companies to operate in Venezuela, but that's apparently not enough to overcome the concerns.

The Reality Check From Big Oil

Energy Secretary Chris Wright and Trump have been pressing major players like Chevron (CVX) and ConocoPhillips (COP) to invest billions in rebuilding Venezuela's production capacity. But executives keep pointing to the same obstacles: political and legal risks, Venezuela's degraded infrastructure, and current low oil prices.

Without strong government guarantees and robust legal protections, these companies say large-scale investments simply don't make sense. It's hard to blame them when you're talking about investing billions in a country with Venezuela's track record.

Congress Wants Answers

The government's deepening involvement in Venezuela's oil sector is raising eyebrows on Capitol Hill. Sen. Elizabeth Warren alleged that oil executives seem to know more about Trump's "secret" Venezuela plan than the American public does. She's calling for public Senate hearings to bring some transparency to the administration's strategy.

Meanwhile, the U.S. has declared it intends to maintain control over Venezuela's oil sales "indefinitely." Wright has outlined an ambitious plan to revive the sector that includes overseeing the sale of Venezuela's oil production and reinvesting the proceeds back into the country's energy infrastructure.

The debate now centers on whether Venezuelan oil will actually return to global markets in meaningful quantities. While many analysts expect supply to increase, energy strategist Jeff Krimmel believes any Venezuelan production will be tightly controlled for political purposes rather than freely flowing into the market.