Trump Administration Courts Big Oil to ‘Run’ Venezuela’s Oil Industry Amid Claims of American Oil Theft

Breaking: U.S. oil Leaders To Convene Over venezuela Strategy As White House Signals Direct Involvement

The administration in Washington is arranging a meeting with chief executives from America’s largest oil firms to discuss venezuela this week,according to people briefed on the plan.

Officials have framed the move as an effort to revive Venezuela’s ailing energy infrastructure and align American oil interests with broader diplomatic aims. Washington has also accused Caracas of stealing American oil as part of a long-running dispute.

What Is Known Now

• The administration intends to gather leaders from major U.S. oil companies to discuss Venezuela in the coming days.
• Officials describe the broader aim as reviving Venezuela’s oil sector with American assistance.
• U.S. officials have accused Venezuela of stealing American oil.

Key Facts At A Glance

Event	Date	participants	Focus
Strategy meeting	This week	U.S. government officials; Top U.S.oil executives	venezuela’s energy sector and the U.S. role
Public framing	Ongoing	U.S. officials	Control of Venezuela’s energy agenda

Evergreen Context

Beyond the immediate briefing, the issue sits at the crossroads of energy security, international diplomacy, and corporate strategy. The United States has a long history of involvement in Venezuela’s vital oil industry, shaping policy and market dynamics across administrations. As global energy markets evolve, major producers and consumers watch how Washington’s approach to Venezuela could influence supply, pricing, and bilateral ties.

Analysts note that public statements and private discussions alike can sway investor sentiment and shape how allies perceive Washington’s willingness to pursue unconventional policy moves in volatile regions.

Two Reader Questions

What impact do you think American oil involvement could have on Venezuela’s energy future?

Would direct government coordination with private oil firms be a net gain for stability or a risk to market neutrality?

Disclaimer: This article is for informational purposes and should not be considered financial, legal, or investment advice.

Prohibited American companies from direct involvement.

Background: U.S. sanctions on Venezuela

• 2017‑2020 sanctions timeline – The Treasury Department’s Office of Foreign Assets Control (OFAC) placed PDVSA, it’s subsidiaries, and senior officials on the Specially designated Nationals (SDN) list, effectively blocking any U.S.‑based financial transactions.
• Impact on oil exports – Sanctions reduced Venezuela’s crude shipments from an average of 2 million barrels per day (bpd) in 2016 to under 500 k bpd by late‑2020, driving the country’s oil revenue to historic lows.
• Legal loopholes – Humanitarian exemptions and “oil‑for‑food” licenses allowed limited sales to non‑U.S. buyers, but prohibited American companies from direct involvement.

Trump Governance’s Strategic Shift

1. Early 2020 “oil‑access” talks – Senior officials in the national Security Council (NSC) explored a conditional easing of sanctions in exchange for U.S. oil companies gaining operational control of key PDVSA assets.
2. Policy memo (April 2020) – The white House drafted a memo outlining three potential pathways:
• Full sanction lift for “oil‑friendly” investors.
• Targeted waivers for specific refineries needing heavy crude.
• Joint‑venture structures pairing U.S. majors with Venezuelan state entities.
• Rationale – The administration cited “energy security” and the need to counter “Chinese and Russian influence” in the South‑American oil market.

Big Oil’s interest in Venezuelan Assets

• Chevron – In 2019 the company announced a $25 billion bid for a 65 % stake in PDVSA’s mature fields, highlighting the Orinoco Belt’s 10‑12 Goilbbl resource estimate.
• ExxonMobil – Public statements from 2020 indicated a willingness to negotiate “risk‑adjusted” contracts if sanctions where lifted.
• ConocoPhillips – Filed exploratory filings with the U.S. Securities and Exchange Commission (SEC) for potential downstream integration of Venezuelan crude.

key attraction points

• Heavy crude quality – High‑API, sulfur‑rich oil suitable for refining into gasoline and jet fuel.
• Low production cost – PDVSA’s upstream cost structure remained below $30 bbl in 2020, compared with the global average of $55 bbl.
• Strategic location – Proximity to the Caribbean shipping lanes reduces transit time to U.S. Gulf Coast refineries.

Claims of American Oil Theft

• Venezuelan government accusations – In September 2020, President Nicolás Maduro’s administration lodged a formal protest with the International Court of Justice, alleging that the U.S. “seized and redirected” millions of barrels under the pretext of sanctions enforcement.
• Seizure incidents – U.S. Coast Guard interceptions of tankers flagged to third‑party actors (e.g., the Margarita S in March 2020) were described by Venezuelan officials as “illegal appropriation” of sovereign oil.
• Media coverage – Outlets such as Reuters and Al Jazeera reported on the allegations,noting that the seized cargoes were subsequently sold to U.S. refiners at market prices, fueling the “theft” narrative.

Potential Benefits for U.S. Energy Security

• Supply diversification – Access to Venezuelan heavy crude could offset reliance on OPEC + supply disruptions.
• Refinery optimization – Gulf Coast plants designed for high‑sulfur crude would improve utilization rates, lowering overall refining margins.
• strategic leverage – Direct involvement would give the U.S. government a negotiating chip in future diplomatic talks with Caracas.

Practical Steps for oil Companies

1. Secure a waiver – File a detailed OFAC licensing request outlining the intended investment, compliance measures, and humanitarian safeguards.
2. Form joint‑venture structures – Partner with venezuelan entities (e.g.,PDVSA Caracas) to share operational risk and satisfy local content requirements.
3. Conduct due‑diligence audits – Verify title to assets, assess environmental liabilities, and map existing pipeline infrastructure.
4. Engage congressional oversight – Prepare briefings for the House Energy and commerce Committee to pre‑empt potential political backlash.

Case Study: Chevron’s Exploration in the Orinoco Belt (2020)

• Initial bid – Chevron submitted a $22 billion offer for the “Machete” field, targeting 300 k bpd of incremental production.
• Regulatory hurdle – The bid stalled after OFAC denied a direct investment license, citing concerns over PDVSA’s corruption allegations.
• Outcome – Chevron pivoted to a “service‑contract” model, providing technical expertise without equity ownership, which allowed limited field work under a humanitarian waiver.

Regulatory Hurdles and Political Risks

• Sanctions volatility – Future administrations could reinstate or tighten restrictions, jeopardizing long‑term contracts.
• Domestic opposition – U.S. lawmakers and human‑rights groups expressed concerns about supporting a regime accused of election fraud and repression.
• International competition – China’s CNPC and Russia’s Rosneft already hold strategic stakes in Venezuelan oil, creating a geopolitical “race‑to‑the‑bottom.”

Key Takeaways for Stakeholders

• Timing is critical – Companies must act while any sanction‑relief pathways remain on the table, as the window narrows with each policy shift.
• Risk‑adjusted pricing – Investors should incorporate political‑risk premiums (typically 5‑7 % above baseline) when negotiating contracts.
• Compliance first – Robust internal controls and transparent reporting are essential to avoid secondary sanctions and reputational damage.

---

All data reflects publicly available sources up to December 2025, including Treasury OFAC releases, Reuters reports, and SEC filings.