The administration of President Donald Trump plans to hold talks later this week with senior executives from U.S. oil companies about expanding oil production in Venezuela following the removal of President Nicolas Maduro by U.S. forces, according to a source familiar with the plans.
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The discussions are seen as central to the administration’s ambition to encourage major U.S. oil producers to return to Venezuela, where the government took control of U.S.-led oil operations nearly 20 years ago. However, the three largest U.S. oil companies—Exxon Mobil (XOM.N), opens new tab, ConocoPhillips (COP.N), opens new tab, and Chevron (CVX.N), opens new tab—have not held any talks with the administration regarding Maduro’s removal, according to four oil industry executives with knowledge of the matter. That account contradicts Trump’s weekend comments claiming he had already met with “all” U.S. oil companies both before and after Maduro was captured.
"Nobody in those three companies has had conversations with the White House about operating in Venezuela, pre-removal or post-removal to this point," one source said Monday.
The forthcoming meetings are expected to play a key role in the administration’s goal of increasing Venezuelan crude output and exports. Venezuela is a member of OPEC, holds the world’s largest oil reserves, and produces crude that can be processed by specialized U.S. refineries. Analysts say realizing those ambitions would take years and require billions of dollars in investment. It remains unclear which executives will attend the meetings and whether companies will meet individually or as a group.
While the White House declined to comment directly on the planned meetings, it said it believed U.S. oil companies were prepared to enter Venezuela.
"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," said White House spokesperson Taylor Rogers.
Exxon, Chevron and ConocoPhillips did not immediately respond to requests for comment.
Trump told NBC News the U.S. government could subsidize oil companies to help them rebuild Venezuela’s energy infrastructure.
When asked whether oil companies had been briefed ahead of the military operation, Trump said, "No. But we’ve been talking to the concept of, 'what if we did it?'"
"The oil companies were absolutely aware that we were thinking about doing something," Trump told NBC News. "But we didn’t tell them we were going to do it."
He added that it was "too soon" to determine whether he had personally spoken with senior executives at the three companies.
"I speak to everybody," he said.
CBS News reported, citing an unnamed source, that executives from the three companies were expected to meet Thursday with Energy Secretary Chris Wright.
One oil industry executive told Reuters that companies would be hesitant to discuss potential Venezuelan operations in group meetings with the White House, pointing to antitrust rules that restrict collective discussions among competitors about investments, timelines and production levels.
On Saturday, U.S. forces carried out a swift overnight operation in Caracas, arresting Maduro and transporting him to the United States to face narcoterrorism charges.
Trump said shortly after Maduro’s capture that he expects major U.S. oil companies to invest billions of dollars to revive Venezuela’s oil production, which has fallen to roughly one-third of its peak over the past two decades due to sanctions and chronic underinvestment.
Industry analysts caution that such plans face major obstacles, including decaying infrastructure and uncertainty surrounding Venezuela’s political outlook, legal system and long-term U.S. policy.
Chevron is currently the only major U.S. oil company operating in Venezuelan oil fields. Exxon and ConocoPhillips previously had significant operations in the country before their assets were nationalized under former President Hugo Chavez.
"I don't think you're going to see any company other than Chevron, who's already there, you know, commit to developing this resource," said one oil industry executive who requested anonymity.
ConocoPhillips has pursued billions of dollars in compensation for the nationalization of three Venezuelan oil projects during Chavez’s presidency. Exxon was also involved in lengthy arbitration proceedings after exiting the country in 2007.
Chevron, which ships about 150,000 barrels per day of Venezuelan crude to the U.S. Gulf Coast, has had to navigate carefully with the Trump administration in recent years to preserve its operations.
Markets reacted positively, with investors betting that Washington’s move against Venezuela’s leadership could open access to its oil reserves for U.S. companies. Trump said the U.S. embargo on Venezuelan oil remains fully in place.