US President Donald Trump said on Saturday that Washington will take control of Venezuela’s vast oil reserves and invite major American energy companies to invest billions of dollars to rebuild the country’s long-neglected oil industry.
Speaking at a news conference at his Mar-a-Lago residence in Florida, Trump said the United States would temporarily operate Venezuela’s government and energy sector, describing the country’s oil infrastructure as “badly broken” after years of mismanagement.
“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 oil infrastructure and start making money for the country,” Trump said.
Venezuela holds an estimated 303 billion barrels of proven crude reserves, roughly one-fifth of the world’s total, according to the U.S. Energy Information Administration. Despite this enormous resource base, the country currently produces only about 1 million barrels per day, accounting for less than 1% of global oil output.
Production has collapsed sharply over the past decade. Output is less than half of what Venezuela produced before former president Nicolás Maduro took office in 2013 and less than a third of the roughly 3.5 million barrels per day pumped before the socialist government consolidated power.
Analysts say international sanctions, economic collapse, chronic underinvestment and years of poor maintenance have crippled the sector. Venezuela’s state-owned oil company PDVSA has acknowledged that much of its pipeline network has not been modernized in decades, estimating that restoring production to peak levels would require at least $58 billion in investment.
“For oil markets, this has the potential to be a historic development,” said Phil Flynn, senior market analyst at the Price Futures Group. “The Maduro government — and before it, Hugo Chávez — effectively ransacked Venezuela’s oil industry.”
Any US-led revival, however, is expected to take years. Even if international access were fully restored immediately, experts caution that Venezuela lacks the infrastructure, skilled workforce and capital needed for a rapid turnaround.
Oil markets were largely unmoved over the weekend, with futures closed and prices already under pressure from oversupply concerns. OPEC has increased production, while global demand has softened amid persistent inflation and slower economic growth.
US crude briefly rose above $60 per barrel earlier this year when the Trump administration began seizing oil from Venezuelan vessels, but prices have since slipped back to around $57. Analysts say Venezuela’s limited current output means any short-term impact on prices is likely to be modest.
“Psychologically, this could give oil prices a small boost,” Flynn said, “but Venezuela’s oil can be replaced by a combination of global producers.”
Venezuela’s crude is primarily heavy, sour oil, which requires specialized equipment and advanced refining capacity. While this type of oil is harder to process, it is particularly valuable for producing diesel, asphalt and industrial fuels—products that remain in tight global supply.
The United States, the world’s largest oil producer, mostly pumps light, sweet crude, which is better suited for gasoline production. Many US refineries, however, were originally designed to process Venezuelan heavy crude and operate more efficiently when supplied with it.
“If US companies are allowed to return and rebuild the Venezuelan oil sector, this could eventually be a game-changer for global energy markets,” Flynn said, while cautioning that such benefits would likely materialize only over the long term.
Bob McNally, president of the Washington-based Rapidan Energy Group, said any price impact would likely be “modest” unless the situation in Venezuela deteriorates into widespread unrest.
“The key question is how quickly a pro-US Venezuela could realistically increase production,” McNally said. “Perception may race ahead of reality. Venezuela could be a huge deal—but not for five to ten years.”
Trump, meanwhile, dismissed Venezuela’s current oil industry as “a total bust,” arguing that American investment could unlock its vast potential if stability is maintained and reconstruction proceeds as planned.
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