US oil companies are seeking guarantees from the Washington administration before investing in Venezuela’s energy sector. According to a report by the Financial Times, American oil executives met with US officials in Miami to discuss potential investments in the South American country. The talks come as the US and Venezuela negotiate a deal to supply up to 50 million barrels of oil to the United States.
President Donald Trump has been urging US oil companies to support his efforts to reshape energy markets, and he is scheduled to meet with the heads of major oil companies, including Exxon Mobil, ConocoPhillips, and Chevron, at the White House. The meeting is expected to focus on ways to increase Venezuela’s oil production, which has been severely impacted by years of mismanagement and US sanctions.
The US oil executives are seeking strong legal and financial guarantees before committing capital to Venezuela. This includes compensation for assets expropriated by the Venezuelan government two decades ago. White House and State Department officials have informed the executives that they need to return to Venezuela quickly and invest significant capital to revive the damaged oil industry if they want to receive compensation.
The potential deal between the US and Venezuela could have significant implications for the global energy market. Venezuela has the largest oil reserves in the world, but its oil industry has been hindered by corruption, mismanagement, and US sanctions. If US oil companies invest in Venezuela, it could help to increase the country’s oil production and provide a new source of energy for the US.
The negotiations between the US and Venezuela are ongoing, and it is unclear when a deal will be reached. However, the fact that US oil companies are seeking guarantees from the Washington administration suggests that they are taking a cautious approach to investing in Venezuela. The US government will need to provide strong assurances to the oil companies if it wants to encourage investment in the country’s energy sector.
