Trump expects American expertise to restore Venezuela's vast oil reserves, with major oil companies dealing directly with the U.S. administration for investment and oversight.
Davos: President Donald Trump declared Wednesday at the World Economic Forum that Venezuela is on the brink of an economic resurgence following the U.S. military operation that removed Nicolás Maduro from power earlier this month.
Speaking to global business and political leaders, Trump described the transition as a turning point that would see Venezuela’s oil industry, possessing the world's largest proven reserves, restored by American expertise.
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Operation Absolute Resolve
The President’s remarks come just over two weeks after Operation Absolute Resolve, a Jan. 3 night raid by U.S. forces in Caracas that captured Maduro and his wife, Cilia Flores. Both are currently in U.S. custody in New York, facing narco-terrorism charges.
Trump characterised the aftermath of the military action as a strategic victory for both nations.
“Once the attack ended, they said, ‘let’s make a deal,” Trump told the Davos audience. “Venezuela is going to make more money in the next six months than they’ve been in the last 20 years. Every major oil company is coming in with us. It’s amazing.”
Control of Oil Exports
A central pillar of the administration's plan is the direct oversight of Venezuela’s oil wealth. Trump confirmed that his administration, rather than the acting government in Caracas led by Delcy Rodríguez, will manage the selection of oil firms allowed to operate in the country.
- Target Investment: The White House is seeking a $100 billion commitment from private industry to rebuild crumbling infrastructure.
- Direct Deals: Trump stated that oil giants like ExxonMobil, Chevron, and ConocoPhillips would "deal with us directly," bypassing traditional negotiations with the Venezuelan state.
- Goal: The President aims to use the surge in production to drive global energy prices down, targeting a U.S. domestic oil price of $50 a barrel.
Scepticism from Industry Leaders
Despite Trump’s optimism, some oil executives remain wary. At a recent White House roundtable, ExxonMobil CEO Darren Woods labelled the country "uninvestable" in its current state, citing a history of asset seizures. Analysts further warn that restoring the dilapidated infrastructure will take years rather than months, given that Venezuelan crude is heavy and expensive to refine.
Published: 21 Jan 2026, 07:47 pm IST
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