Trump Says U.S. Oil Firms Will Rebuild Venezuela’s Broken Industry

President Trump said the United States would send major oil companies to Venezuela to repair its oil infrastructure and "start making money for the country," speaking at a news conference confirming the capture of President Nicolás Maduro, who faces federal drugs and weapons charges.

Venezuela claims more than 300 billion barrels of oil in the ground but is producing roughly one million barrels a day, about 1 percent of global output. That is well below the more than two million barrels a day the country produced in the early 2010s. The national oil company, PDVSA, lacks the capital and expertise to raise output.

A study by Energy Aspects cited "years of insufficient drilling, dilapidated infrastructure, frequent power cuts and equipment theft" as reasons the fields are run down. U.S. sanctions have limited Venezuela's exports, which now go primarily to China. Chevron is the main Western company still operating in Venezuela and produces about a quarter of the country's oil.

Roughly half of Chevron's Venezuelan production is exported to the United States. The company, which has worked in Venezuela since 1923 and maintains five onshore and offshore projects, said it was trying to ensure the safety of employees and operations and that it "supports a peaceful, lawful transition" and is "prepared to work constructively with the U.S.

Key Topics

Business, Nicolás Maduro, Pdvsa, Chevron, Venezuela, Energy Aspects