Trump administration launches new bid to pressure US oil companies on Venezuela

President Donald Trump’s Cabinet officials are scheduling their first formal calls with oil company CEOs to press them to revive Venezuela’s flagging oil production, four people familiar with the conversations told POLITICO.

Calls that Energy Secretary Chris Wright and Interior Secretary Doug Burgum are planning with chief executives represent some of the first official outreach that the administration has made to the U.S. companies after months of informal discussions with people in the sector, these people said — days after President Donald Trump told reporters that “our very large United States oil companies” will “spend billions of dollars” in Venezuela.

However, the companies’ executives remain wary of entering a socialist-ruled country that was plunged into political upheaval after U.S. forces took strongman Nicolás Maduro into custody over the weekend, following decades of neglect in its nationalized oil fields, according to market analysts and industry officials.

Industry officials are also discussing what types of incentives would be needed to get them to return to the country, according to two industry officials familiar with the plans who were granted anonymity because they were not authorized to talk to the media. Those could include having the U.S. government signing contracts guaranteeing payment and security or forming public-private joint ventures.

Even if they don’t yet have fully formed ideas for what would get them to invest in Venezuela, Trump’s insistence is difficult to ignore, said one former administration agency head who was granted anonymity to discuss the evolving matters.

“Most companies have been thinking about this for a while. All of the big folks are probably thinking about it — and very, very, very hard,” the person said. “It’s a pretty powerful thing when the president of the United States says, ‘I need you to do this.’”

Publicly, the White House expressed confidence.

“All of our oil companies are ready and willing to make big investments in Venezuela that will rebuild their oil infrastructure, which was destroyed by the illegitimate Maduro regime,” spokesperson Taylor Rogers said in a statement. “American oil companies will do an incredible job for the people of Venezuela and will represent the United States well.”

One person said the administration also “hopes” the American Petroleum Institute, the powerful trade association representing oil companies working in the United States, would form a task force to advise the White House on how best to revive Venezuelan oil production.

“In nearly all cases, these calls are the first outreach from the administration on Venezuela,” the person said.

API is “closely watching developments involving Venezuela and any potential implications for global energy markets,” group spokesperson Justin Prendergast said in response to questions.

“Events like this underscore the importance of strong U.S. energy leadership. Globally, energy companies make investment decisions based on stability, the rule of law, market forces and long-term operational considerations,” Prendergast said.

Trump told reporters on Sunday that he had spoken to U.S. oil companies “before and after” the military operation that seized Maduro and brought him to New York, where the former Venezuelan leader made his first court appearance on Monday.

“And they want to go in, and they’re going to do a great job for the people of Venezuela, and they’re going to represent us well,” Trump continued.

Industry executives on Monday told Reuters no such outreach had occurred to oil majors Exxon Mobil, ConocoPhillips and Chevron, all of which have experience working in Venezuela’s oil fields.

Bringing Venezuela’s oil production — now around 1 million barrels a day — back to its glory-days’ height of 3 million barrels a day would require at least $183 billion and more than a decade of effort, industry analyst firm Rystad Energy said Monday. While the Venezuelan government might supply some of that money, international companies would need to spend $35 billion in the next few years to reach that goal.

“Rystad Energy believes that around $53 billion of oil and gas upstream and infrastructure investment is needed over the next 15 years just to keep Venezuela’s crude oil production flat at 1.1 million” barrels a day, the firm said in a client note. “Going beyond 1.4 million [barrels a day] is possible but would require a stable investment of $8 [billion]-$9 billion per year from 2026 to 2040, on top of ‘hold-flat’ capital requirements.”

ConocoPhillips spokesperson Dennis Nuss said in a statement that it would be “premature to speculate on any future business activities or investments,” but said the company is monitoring the “potential implications for global energy supply and stability” from the events in Venezuela.

ConocoPhillips is continuing its efforts to collect more than $10 billion in compensation it was awarded in arbitration for the Venezuelan government’s seizure of the company’s assets in 2007, Nuss said.

Exxon Mobil and Chevron did not respond to requests for comment. Oil field services companies Halliburton and Baker Hughes did not respond for comment, and SLB declined to comment.

The only company to publicly indicate interest in Venezuela has been Continental Resources, a firm led by Trump ally and informal energy adviser Harold Hamm. Hamm told the Financial Times on Sunday that “with improved regulatory and governmental stability we would definitely consider future investment.”

Continental, which played a key role in developing oil fracking technology, has never operated outside the United States — though it announced on Monday a deal in which it would buy assets in Argentina.

People in the oil industry have said a major concern is that Venezuela is not stable enough to guarantee the safety of any workers and equipment they might send there. Companies are asking that the U.S. government contract directly with them before they commit to entering the country.

“We need some boots-on-the-ground security and some financial security. That’s on top of the list,” said a second industry executive familiar with the talks who was granted anonymity to discuss private conversations.

Trump’s decision to allow Maduro’s second-in-command, acting President Delcy Rodríguez, and other members of the regime to remain in charge of the country’s government has also made industry executives wary of taking on the job, this person added. Rodríguez and her family had been part of the Venezuelan government under Hugo Chávez in the mid-2000s when the regime seized the assets of foreign oil companies. Colombia, Canada, the EU and the United States have levied sanctions against her after accusing her of undermining the Venezuelan elections.

“Who’s running the game here?” the second industry executive said. “If she’s going to be in charge — plus the guys who have been there all along — what guarantee can you give us that stuff is going to change? Those three issues — physical, financial and political security — have to be settled before anyone goes in.”

Longtime Republican foreign policy hand Elliott Abrams, who served as Trump’s special envoy to Venezuela during his first term, said the president is “exaggerating” the likelihood that companies will return to the country, given the risk and capital required.

“The president seems to suggest that he will make the decision, but that is not right — the boards of these companies will make the decisions,” said Abrams, who is now senior fellow for Middle Eastern studies at the Council on Foreign Relations.

“I expect that you’ll see all of them now say, ‘This is fantastic, it’s a great opportunity, and we have a team ready to go to Venezuela,’ but that’s politics,” he added. “That doesn’t mean they’re going to invest.”