The US president Donald Trump has promised major oil companies “total safety” and “total security” in Venezuela and, as a result, is urging them to invest tens of billions of dollars to rebuild the country’s shattered oil industry. Following a dramatic political shift, the White House is pushing American oil firms to return quickly and at scale, arguing that the moment offers a rare opening.
At the same time, the proposal has drawn global attention because Venezuela holds some of the world’s largest oil reserves, even though years of neglect, mismanagement, and political turmoil have left its energy system in ruins.
However, while oil executives have shown interest, they remain cautious, emphasizing that security promises alone are not enough and that clear legal and commercial reforms must come first before they commit such massive investments.
A bold promise of protection and opportunity
At a White House roundtable, the president told oil executives that Venezuela is now open for business again. He promised that companies investing in the country would receive full protection from the US government. He stressed that the government would provide security, not cash. The money, he said, must come from the companies themselves.
Trump cited a striking figure and said oil firms will invest at least $100 billion to rebuild Venezuela’s oil fields, pipelines, refineries, and export systems. He emphasized that taxpayers will not fund the effort, stating instead that private companies will pay for the work while the government provides security on the ground.
Donald Trump spoke directly to the companies and told them they face a clear choice: help rebuild Venezuela’s oil sector now or make room for others who are ready to step in. He also warned that many firms stand prepared to replace any company that hesitates.
The administration framed the push as a win for all sides, saying Venezuela will revive its oil industry, the United States will benefit from lower energy prices, and oil companies will gain access to vast reserves that have remained locked away for years.
Trump also downplayed the risks. He pointed out that many oil firms already operate in dangerous regions around the world. Compared to those locations, he suggested, Venezuela would be manageable with US backing.
Oil companies show interest but raise concerns
Oil executives at the meeting welcomed the political shift and the promise of security. Several said they were ready to increase production quickly, especially in projects where they already have staff and equipment in place.
Some companies said they could double oil output from existing operations almost immediately. Thousands of workers are already on the ground, and some joint ventures are still active despite years of sanctions and instability.
However, optimism came with clear warnings. Executives said Venezuela remains a difficult place to invest. One senior leader described the country as “uninvestable” in its current form. That word stood out. It reflected long-standing fears about weak laws, unclear contracts, and sudden policy changes.
To spend billions, companies demand clear rules, stable tax systems, and strong protection for their contracts. They also seek firm assurances that the state will not seize or control their assets again, as it did in the past. Debt adds another challenge, as Venezuela owes billions to foreign energy companies, making some firms among its largest non-government creditors.
Although Trump promised that past losses would not be reopened, his remarks still left companies questioning how earlier claims would be treated. Executives also stressed that they must rebuild trust, noting that cooperation with a new government and strong support from Washington could help, but only if concrete changes happen before large-scale investment begins.
Venezuela’s oil wealth and years of decline
Venezuela’s oil reserves are often described as the largest in the world. In the late 1990s and early 2000s, oil production was strong. The industry attracted foreign partners and generated major revenues for the state. That changed when the government tightened control over the energy sector. Private companies were pushed aside. State control expanded. Over time, investment slowed and infrastructure aged. Skilled workers left the country. Equipment broke down and was not replaced.
As a result, oil output collapsed. Pipelines leaked. Refineries failed. Export terminals fell into disrepair. What was once a booming industry became a symbol of economic decline. The recent political shift has reopened the debate over Venezuela’s oil future. The White House has made it clear that it wants long-term control over the country’s oil resources. It has also said it plans to sell large volumes of seized crude oil.
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This approach has raised concerns among analysts and market watchers. History shows that foreign involvement can increase oil output, but results are often unstable. Political risk remains high, and rebuilding an entire energy system takes time. There is also a global context.
The oil market is currently well supplied. Energy prices are lower than last year, and producers face strong competition. This makes large investments harder to justify, even with huge reserves available.
Still, Trump continues to push the idea that Venezuela can return to being a major oil producer quickly. He has claimed that production could rise sharply within 18 months, creating what he described as record-breaking output levels.
For now, oil companies appear interested but careful. They welcome the promise of safety and the opening of opportunities. Yet they continue to stress that security must be matched by stable laws and clear rules before billions of dollars can truly begin to flow.
