President Donald Trump is proposing a controversial plan to use American taxpayer money to incentivise major US oil corporations to restart and expand their operations in Venezuela, following the military operation that deposed Nicolás Maduro.
The Costly Challenge of Reviving Venezuelan Oil
In an interview with NBC News on Monday, 7 January 2026, Trump acknowledged the enormous financial hurdle, stating that oil firms would need to spend "billions of dollars" to repair Venezuela's dilapidated oil infrastructure. He floated the idea of government reimbursement, saying, "A tremendous amount of money will have to be spent, and the oil companies will spend it, and then they’ll get reimbursed by us or through revenue."
This move comes after two of the three US energy titans, ExxonMobil and ConocoPhillips, were forced to abandon the country nearly two decades ago. Their exit was triggered by Venezuela's decision to nationalise its oil industry and seize billions in assets, compounded by prolonged political and economic chaos and US sanctions.
Corporate Caution and Political Risk
The response from the industry has been guarded. When questioned about a potential return, ConocoPhillips stated it would be "premature to speculate on any future business activities or investments." Chevron, the sole US company that maintained a presence, has also expressed caution.
Chevron's CEO, Mike Wirth, told Bloomberg in December that any decision to expand in Venezuela would require a "long view," hinting at the significant time and stability needed. Energy experts, like Francisco J. Monaldi from Rice University, warn that modernising the country's oil infrastructure is a multi-billion dollar, multi-year endeavour.
A critical risk for companies is the longevity of such subsidies. They must weigh whether a future administration would continue the financial support promised by the current one, a potential gamble that could outweigh the massive upfront costs.
Whitehall Engages with Industry Leaders
According to the Washington Post, the administration is actively engaging with the firms. Secretary of Energy Chris Wright spoke with executives from ExxonMobil, Chevron, and ConocoPhillips this week and was scheduled to meet them again at a Goldman Sachs industry event in Miami on Wednesday.
While using favourable tax policies to assist oil companies is not new, the scale of the proposed intervention in a nation with Venezuela's volatile history is unprecedented. The central question remains: will government subsidies be enough to convince wary corporations to bet billions on Venezuela's future?
