In brief
US President Donald Trump has called for at least $100 billion in oil industry investments in Venezuela, aiming to revitalize its struggling oil sector. However, major oil executives express reservations, declaring the country currently 'uninvestable' due to historical issues and political uncertainty. Despite its vast energy reserves, significant changes are essential to attract any major financial commitments. Trump's plans hinge on leveraging the nation's oil as a means to lower energy prices, but analysts warn that achieving increased production and investment will be a substantial challenge without political stability.
US President Donald Trump has asked for at least $100bn (£75bn) in oil industry spending for Venezuela, but received a lukewarm response at the White House as one executive warned the South American country was currently 'un-investable'.
Bosses of the biggest US oil firms who attended the meeting acknowledged that Venezuela, sitting on vast energy reserves, represented an enticing opportunity.
But they said significant changes would be needed to make Venezuela an attractive investment. No major financial commitments were immediately forthcoming.
Trump has said he will unleash the South American nation's oil after US forces seized its leader Nicolas Maduro in a 3 January raid on its capital.
One of the things the United States gets out of this will be even lower energy prices, Trump said in a meeting at the White House on Friday.
However, oil executives at the meeting expressed caution. Exxon's chief executive Darren Woods stated: We have had our assets seized there twice and so you can imagine to re-enter a third time would require some pretty significant changes from what we've historically seen and what is currently the state. He further added, Today it's uninvestable.
Venezuela has had a complicated relationship with international oil firms since oil was discovered in its territory more than 100 years ago. Chevron is the last remaining major American oil firm still operating in the country, with some companies from Spain and Italy also active there.
Trump indicated his administration would determine which firms could operate in Venezuela, emphasizing that American companies would deal directly with the U.S. instead of with the Venezuelan government.
Currently, the White House is working to selectively lift US sanctions on Venezuelan oil, yet intends to maintain control over sales to exert leverage over the new regime led by Vice-President Delcy Rodríguez.
Despite Trump’s ambitions, analysts caution that significantly increasing production will be complex without legal stability and security. Investments might be more appealing to smaller firms, but major players are hesitant to commit billions under the current conditions.
While Trump's proposed investment could revitalize Venezuela's oil sector, the path to achieving that is fraught with challenges and uncertainties.
