Trump is in a hurry for Venezuelan oil; oil majors are not

Posted on January 28, 2026 by Taber Times

U.S. President Donald Trump is rushing to cash in on Venezuela’s oil. The oil majors he needs to do it are not.

That hesitation is not political caution or corporate foot-dragging—it is a blunt assessment that Venezuela remains commercially and legally uninvestable, regardless of Washington’s urgency.

Trump was clear in his intentions from day 1: he planned to tap into the country’s vast oil reserves. Ever since, he has been urging the U.S. oil majors to return to Venezuela and revive the country’s dilapidated oil sector as quickly as possible.

Early this month, Trump had said that Venezuela would “turn over” between 30 to 50 million barrels of its crude to the U.S.

Within a couple of weeks of Maduro’s removal from power, the United States has completed its first sale of Venezuelan oil, valued at US$500 million, U.S. officials confirmed.

According to media reports, additional oil sales are expected in the coming days and weeks.

The move follows years of U.S. sanctions on Venezuela’s energy sector and Washington’s recognition of an opposition government, which it has used to justify effective control over certain Venezuelan state assets abroad.

Since Maduro’s removal, moreover, some figures within Venezuela’s political and economic establishment have reportedly signalled a willingness to engage with Washington on economic issues, including oil, according to U.S. and regional media reports.

Venezuelan crude oil is being offered at a discount to traders compared to competing oil from other countries. Charles Kennedy of Oilprice.com reports that commodity traders are vying for Venezuelan oil deals with Washington.

Companies including Chevron, Vitol and Trafigura are seeking to expand their fleets to handle as large a portion of those 30 to 50 million barrels as possible. But urgency in Washington has not translated into confidence in the boardroom.

While Trump and his administration plan to capitalize on Venezuela’s oil assets, U.S. energy executives appeared skeptical during a meeting at the White House on Friday, Jan. 9. They need several major clarifications before committing to Venezuela.

In the meantime, the U.S. is moving to expand Chevron’s operating licence in Venezuela. It would allow the company to pay cash rather than crude to settle royalties and other obligations to the Venezuelan government, in a bid to address some industry concerns and increase exports, according to Reuters.

“It’s uninvestable,” ExxonMobil CEO Darren Woods told officials while discussing the obstacles to doing business in Venezuela.

“There are several legal and commercial frameworks that would have to be established to even understand what kind of returns we would get on the investment.”

Several other executives also expressed reluctance to do business in the country. After the lengthy White House meeting last Friday, Trump and his top aides emerged without any major commitments from companies to invest billions of dollars in the nation.

Reuters, quoting a Washington official, reported that the proceeds of the sale were put into bank accounts under the control of the U.S. federal government.

Another source told Reuters that at least one of these accounts was in Qatar, which is considered a neutral location “where funds can move with U.S. approval and without risk of seizure,” according to Reuters.

Some of those proceeds are now being channelled through Venezuelan banks to sell U.S. dollars on the local exchange market, highlighting how oil revenues are already being used to manage domestic economic pressures, Reuters reported.

Those reservations are rooted in Venezuela’s legal structure. Oil executives and lawyers for international oil companies are lobbying for changes to Venezuela’s hydrocarbon laws that would give them the legal right to export the oil they produce, Reuters reported.

Representatives of international oil companies want changes to Venezuela’s legal framework that would keep state-run oil giant PDVSA as the majority partner in joint ventures while allowing foreign companies to control their share of production and access export terminals and shipping infrastructure. That would be a change from existing Venezuelan law, which requires oil production to remain under PDVSA’s control. Under the current system, PDVSA sells the oil and deposits proceeds into joint venture accounts with foreign partners to cover expenses, investment and dividends.

Taxes are another sticking point. The Reuters report added that international oil companies are also seeking to roll back all additional taxes imposed by Venezuela in 2021, insisting that only standard royalties and income tax—rather than layered levies imposed in recent years—apply to their Venezuelan crude income.

For Canada, a sustained return of Venezuelan heavy crude to U.S. refineries could eventually increase competition for Canadian oil sands exports and put additional pressure on price differentials in its primary export market.

What Washington is discovering the hard way is that political urgency cannot substitute for legal certainty, commercial clarity or investor trust. Until the legal and fiscal terms change, the standoff between Washington’s urgency and investor caution is unlikely to break.

Toronto-based Rashid Husain Syed is a highly regarded analyst specializing in energy and politics, particularly in the Middle East. In addition to his contributions to local and international newspapers, Rashid frequently lends his expertise as a speaker at global conferences.

Organizations such as the Department of Energy in Washington and the International Energy Agency in Paris have sought his insights on global energy matters. © Troy Media