Trump Predicts US Oil Push In Venezuela

(MENAFN- The Arabian Post) Donald Trump has said United States oil companies would invest billions of dollars to rebuild Venezuela's battered energy system, asserting that a change in political control would unlock one of the world's largest proven crude reserves for American firms and help stabilise global supply.

Speaking during a campaign-style address, Donald Trump portrayed Venezuela's oil sector as a prime target for rapid private investment, arguing that US producers could move quickly to restore output, refineries and export capacity after years of mismanagement and sanctions. He claimed American capital and technology would reverse the decline of an industry that once pumped more than 3 million barrels a day and now operates at a fraction of that level.

Trump linked his comments to assertions of a decisive US-backed military operation and the capture of Nicolás Maduro, a claim that has not been corroborated by independent officials or international observers. The White House and Pentagon have not confirmed any such operation, and the situation inside Venezuela remains fluid, with the existing power structure still controlling state institutions and security forces. Analysts caution that any suggestion of regime change would represent a profound escalation with far-reaching legal and diplomatic consequences.

Despite the uncertainty, Trump's remarks highlight a broader debate in Washington over Venezuela's future and the role of US energy firms. Years of underinvestment, corruption and the exodus of skilled workers have left the national oil company, Petróleos de Venezuela, struggling with decaying pipelines, idle upgraders and refineries operating well below capacity. Power outages and equipment failures have become routine across major producing regions such as the Orinoco Belt.

See also Treasury warns shoppers as holiday cyber scams surge

Industry executives say restoring production would require extensive work. Wells need re-completion, pipelines must be replaced, storage tanks repaired and refineries overhauled to meet safety and environmental standards. Estimates from consultants and former officials suggest that lifting output to even 1.5 million barrels a day would demand sustained investment running into tens of billions of dollars over several years. Trump's suggestion that US companies could spend“billions” quickly reflects the scale of the challenge but understates the complexity involved.

Sanctions policy remains the central variable. US restrictions have limited Venezuela's access to markets, finance and technology, while narrowly tailored licences granted to a handful of foreign firms have allowed modest increases in exports under strict conditions. Any large-scale entry by US producers would require a sweeping change in sanctions, clarity over property rights and assurances that contracts would be honoured by a future government. Energy lawyers note that unresolved disputes over expropriated assets and arbitration awards would also need settlement before fresh capital flows.

Geopolitically, a US-led revival of Venezuelan oil would reverberate across the Americas. Supporters argue that higher output could ease pressure on global prices and reduce reliance on supplies from geopolitically sensitive regions. Critics counter that unilateral action could destabilise neighbouring countries, trigger legal challenges and deepen divisions with allies wary of military intervention. Regional governments have repeatedly called for a negotiated political transition rather than force.

Within the oil industry, reaction has been cautious. Executives privately acknowledge Venezuela's resource potential and the appeal of proximity to US Gulf Coast refineries, which are configured to process heavy crude. At the same time, they point to security risks, regulatory uncertainty and the long timeline required to rehabilitate fields and facilities. Shareholders have also grown more sensitive to political risk and environmental liabilities after years of volatility in emerging markets.

See also Alphabet set for fresh paper gains from SpaceX valuation jump

Notice an issue? Arabian Post strives to deliver the most accurate and reliable information to its readers. If you believe you have identified an error or inconsistency in this article, please don't hesitate to contact our editorial team at editor[at]thearabianpost[dot]com. We are committed to promptly addressing any concerns and ensuring the highest level of journalistic integrity.

MENAFN05012026000152002308ID1110556031