Getty ImagesPresident Donald Trump says the US oil industry can be “up and running” with expanded operations in Venezuela 18 months after a surprise military operation ousted President Nicolas Maduro from power.
Trump told NBC News that “there's going to have to be a huge amount of money spent, and the oil companies are going to spend it, and the oil companies are going to spend it, and then they're going to get reimbursed from us or from the revenue.”
Representatives of major US oil companies planned to meet with the Trump administration later this week, BBC affiliate CBS News reported.
Analysts previously told the BBC that it could take tens of billions of dollars, and possibly a decade, to restore Venezuela's production to previous levels.
Trump's remarks come days after he said the US would “run” Venezuela following the overthrow of Maduro, who has now been brought to the US to face criminal charges.
Speaking to NBC about his 18-month timeline, Trump suggested oil production could rise “in less time, but it will cost a lot of money.”
He has openly stated his ambitions for American oil companies to expand their operations in the country.
“Having Venezuela as an oil producer is good for the United States because it drives down the price of oil,” Trump added.
Analysts who previously spoke to the BBC were skeptical that Trump's plans would have a major impact on global oil supplies (and therefore prices). They suggested that companies would seek reassurance that there was a stable government, and even if they invested, their projects would not materialize for many years.
In recent days, Trump has said that American oil companies can rebuild Venezuela's oil infrastructure.
The country has an estimated 303 million barrels, the world's largest proven reserves. But it produces only a fraction of that amount, and its production has been declining since the early 2000s.
The Trump administration sees significant potential for its energy prospects in Venezuela's reserves.
Increasing domestic oil production will be costly for American firms. In addition, Venezuelan oil is heavy and more difficult to refine. Currently, only one American company, Chevron, operates in the country.
Asked to comment on Trump's oil production plans in Venezuela, Chevron spokesman Bill Turenne said the company “remains focused on the safety and well-being of our employees and the integrity of our assets.”
“We continue to operate in full compliance with all relevant laws and regulations,” Turenne added.
Other major U.S. energy companies Exxon and ConocoPhillips did not immediately respond to requests for comment.
Justifying Maduro's takeover of Caracas, Trump also said Venezuela “unilaterally seized and stole American oil.”
Vice President J.D. Vance repeated these statements regarding X after Maduro's capture, writing that “Venezuela has expropriated American oil property and until recently used this stolen property to get rich and finance its narco-terrorism activities.”
The reality is more complicated.
US oil companies have a long history in Venezuela, producing oil under licensing agreements.
Venezuela nationalized its oil industry in 1976, and in 2007 President Hugo Chavez tightened government control over the remaining foreign assets of U.S. oil companies operating in the country.
In 2019, a World Bank tribunal ordered Venezuela to pay ConocoPhillips $8.7 billion in compensation for the 2007 move.
This amount was not paid by Venezuela, so at least one US oil company is owed compensation.
But BBC Verify's Ben Chew said the claim that Venezuela “stole” American oil is too simplistic, as experts say the oil itself never actually belonged to anyone other than Venezuela.
