President Donald Trump said that American oil companies were prepared to enter Venezuela and invest to restore production in the South American country, an announcement that came just hours after Nicolás Maduro was captured and removed by U.S. forces.
“We’re going to have our very large U.S. oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, oil infrastructure, and start making money for the country,” Trump said on Saturday.
While Chevron is the only American major with current operations in Venezuela, Exxon Mobil and ConocoPhillips, among others, have storied histories in the country.
“We’re closely watching developments involving Venezuela, including the potential implications for global energy markets,” an API spokesperson told Reuters.
Chevron, which exports around 150,000 bpd of crude from Venezuela to the U.S. Gulf Coast, said it is focused on the safety and wellbeing of its employees, in addition to the integrity of its assets. “
Trump’s plans to have large U.S. oil companies enter Venezuela and get “oil flowing” will be hindered by lack of infrastructure that will require many years and heavy investment, analysts said. “There are still many questions that need to be answered about the state of the Venezuelan oil industry, but it is clear that it will take tens of billions of dollars to turn that industry around,” said Peter McNally, Global Head of Sector Analysts at Third Bridge, adding that it could take at least a decade of Western oil majors committing to the country.
A U.S. embargo on all Venezuelan oil, meanwhile, remains in full effect, Trump said. He told reporters that the U.S. military forces would remain in position until U.S. demands had been fully met.
“The American armada remains poised in position, and the U.S. retains all military options until United States demands have been fully met and fully satisfied,” he said.
(Reporting by Arathy Somasekhar, Richard Valdmanis, Gram Slattery, Jarrett Renshaw and Liz Hampton; Writing by Andrea Shalal, Nathan Crooks; Editing by Frances Kerry)