The Trump administration has been asking US oil companies if they would consider going back to Venezuela after President Nicolas Maduro is gone, an exclusive report by the Politico said, citing three people aware of the discussions. So far, the companies have made it clear that they are not interested.
The talks with the oil industry is a sign that the White House is already thinking about what Venezuela could look like after Nicolas Maduro is no longer in power, and how global oil markets are shaping that plan.
Low oil prices give Trump leverage on Venezuela, but keep US companies away
The report added that the world has plenty of oil with prices close to lowest levels in almost five years. This gives Trump more room to step up pressure on the OPEC member. At the same time, these low prices make Venezuela a risky bet for oil companies. With oil selling cheaply, firms are unlikely to invest large sums in Venezuela’s ageing and damaged oil infrastructure, which was taken over by the government under Hugo Chavez decades ago, according to industry officials and analysts.
On Wednesday afternoon, US oil was trading at about $56 a barrel, its lowest level since January 2021. This means Trump does not have to worry much about fuel prices jumping if tensions rise with Venezuela. But it also means US oil companies see better and safer opportunities in other countries.
Two people familiar with the matter told Politico that the Trump administration only began reaching out to the industry recently.
Trump demands Venezuela to return assets it took from US oil companies years ago
Trump on Wednesday demanded Venezuela to return assets that it took from US oil companies several years ago, justifying his decision to impose a blockade on oil tankers going to or coming from Venezuela.
When asked about his latest step in the long pressure campaign against President Nicolas Maduro, Trump pointed to US investments that were lost in Venezuela. He suggested that Washington’s actions against the Caracas leadership are partly driven by disputes over oil assets, along with claims linked to drug trafficking. As a result of the sanctions, some oil tankers have already started steering clear of Venezuela.
“You remember they took all of our energy rights. They took all of our oil not that long ago. And we want it back. They took it — they illegally took it,” Trump said.
Oil takeover to drug claims – Why is Venezuela in Trump’s crosshairs
US oil companies once controlled much of Venezuela’s oil industry. This changed when the government took over the sector, first in the 1970s and later under Hugo Chávez and his successor Nicolás Maduro. The payments offered to the companies were seen as too low, and in 2014 an international arbitration body ordered Venezuela’s socialist government to pay ExxonMobil $1.6 billion.
Although oil has long shaped ties between Venezuela and the United States, the Trump administration has put more stress on accusations that President Maduro has links to drug traffickers. It has claimed his government helps drugs reach the US. In a social media post on Tuesday night, Trump said Venezuela was using oil money to support drug trafficking and other criminal activities.
Last week, US took control of an oil tanker near Venezuela’s coast. The Trump administration has also launched several attacks on suspected drug boats in the Caribbean Sea and the eastern Pacific, which together have killed at least 95 people. These actions have raised concerns among lawmakers and legal experts about whether the strikes are legally justified. Trump has also said he is weighing the option of carrying out attacks on land.