The White House has told companies they must rebuild Venezuela's crude-pumping infrastructure if they want compensation for assets seized by Caracas.
By
Ben Lefebvre,
Zack Colman and
James Bikales01/03/2026 02:35 PM EST
American oil companies have long hoped to recover the assets that Venezuela’s authoritarian regime ripped from them decades ago.
Now the Trump administration is offering to help them achieve that aim — with one major condition.
Administration officials have told oil executives in recent weeks that if they want compensation for their rigs, pipelines and other seized property, then they must be prepared to go back into Venezuela now and invest heavily in reviving its shattered petroleum industry, two people familiar with the administration’s outreach told POLITICO on Saturday. The outlook for Venezuela’s shattered oil infrastructure is one of the major questions following the U.S. military action that captured leader Nicolás Maduro.
But people in the industry said the administration’s message has left them still leery about the difficulty of rebuilding decayed oil fields in a country where it’s not even clear who will lead the country for the foreseeable future.
“They’re saying, ‘you gotta go in if you want to play and get reimbursed,’” said one industry official familiar with the conversations.
The offer has been on the table for the last 10 days, the person said. “But the infrastructure currently there is so dilapidated that no one at these companies can adequately assess what is needed to make it operable.”
President Donald Trump suggested in a televised address Saturday morning that he fully expects U.S. oil companies to pour big money into Venezuela.
“We’re going to have our very large United States oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure and start making money for the country,” Trump said as he celebrated Maduro’s capture.
It’s been five decades since the Venezuelan government first nationalized the oil industry and nearly 20 years since former President Hugo Chávez expanded the asset seizures. The country has some of the largest oil reserves in the world, but its petroleum infrastructure has decayed amid years of mismanagement and meager investment.
Initial thoughts among U.S. oil industry officials and market analysts who spoke to POLITICO regarding a post-Maduro Venezuela focused more on questions than answers.
The administration has so far not laid out what its long-term plan looks like, or even if it has one, said Bob McNally, a former national security and energy adviser to President George W. Bush who now leads the energy and geopolitics consulting firm Rapidan Energy Group.
“It’s not clear there’s been a specific plan beyond the principal decision that in a post-Maduro, Trump-compliant regime that the U.S. companies — energy and others — will be at the top of the list” to reenter the country, McNally said. He added: “What the regime looks like, what the plans are for getting there, that has not been fully fleshed out yet.”
A central concern for U.S. industry executives is whether the administration can guarantee the safety of the employees and equipment that companies would need to send to Venezuela, how the companies would be paid, whether oil prices will rise enough to make Venezuelan crude profitable and the status of Venezuela’s membership in the OPEC oil exporters cartel. U.S. benchmark oil prices were at $57 a barrel, the lowest since the end of the pandemic, as of the market’s close on Friday.
The White House did not immediately reply to questions about its plan for the oil industry, but Trump said during Saturday’s appearance at his Mar-a-Lago estate in Florida that he expected oil companies to put up the initial investments.
“We’re going to rebuild the oil infrastructure, which requires billions of dollars that will be paid for by the oil companies directly,” Trump said. “They will be reimbursed for what they’re doing, but it’s going to be paid, and we’re going to get the oil flowing.”
However, the administration’s outreach to U.S. oil company executives remains “at its best in the infancy stage,” said one industry executive familiar with the discussions, who was granted anonymity to describe conversations with the president’s team.
“In preparation for regime change, there had been engagement. But it’s been sporadic and relatively flatly received by the industry,” this person said. “It feels very much a shoot-ready-aim exercise.”
Venezuela’s oil output has fallen to less than a third of the 3.5 million barrels per day that it produced in the 1970s, and the infrastructure that is used to tap into its 300 billion barrels of reserves has deteriorated in the past two decades.
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All spent on Ukraine reimbursed.