Trump Reiterates Vision for U.S. Involvement in Venezuelan Oil, Citing Potential $50B in Annual Revenue

At a high-level meeting held at the White House on Friday, Donald Trump outlined a strategy to leverage Venezuela’s vast oil reserves—estimated at 300 billion barrels of proven and probable reserves—as a cornerstone of a new U.S.-backed economic framework for the country. He emphasized the role of major American energy players, including ExxonMobil, Chevron, and Marathon Petroleum, in managing extraction, refining, and export operations under a new governance model. Trump projected that reactivating Venezuela’s crude production to pre-2015 levels—approximately 2.5 million barrels per day—could generate $50 billion annually in export revenue, with 60% of proceeds allocated to rebuilding public infrastructure and 40% returned to private investors. This figure assumes a stable political environment, updated sanctions relief, and modernized refining capacity, particularly at the country’s key facilities such as the Amuay and Cardón refineries. The proposal faces significant hurdles, including unresolved disputes over asset ownership, the need for $20–25 billion in initial infrastructure investment, and the lack of a recognized transitional government. Industry analysts note that even under optimistic scenarios, full production recovery could take five to seven years, with meaningful revenue flowing only after 2029. The U.S. Department of Energy has not formally endorsed the plan but has signaled interest in assessing transitional risk mitigation strategies. Market watchers point to increased volatility in crude futures, with Brent crude rising 4.2% following the announcement, reflecting investor speculation about future supply shifts. Energy stocks such as ExxonMobil (XOM), Chevron (CVX), and Valero (VLO) saw gains of 2.1% to 3.7% in early trading, though analyst caution remains high due to geopolitical uncertainty and the absence of a binding agreement.