Trump’s Plan to Revive Venezuela’s Oil Industry Faces Major Challenges

US President Donald Trump’s proposal to seize and revive Venezuela’s oil industry is unlikely to have an immediate impact on global oil prices, analysts say. Years of mismanagement, corruption, and international sanctions have left Venezuela’s oil infrastructure in severe disrepair, requiring massive investment and political stability before production can rise significantly.

While Venezuela holds the world’s largest proven oil reserves—about 303 billion barrels—it currently produces only around 1.1 million barrels per day, less than one per cent of global supply. Analysts estimate it could take nearly $100 billion and a decade to restore production to historic levels.

Trump has claimed American oil companies would rebuild the industry, but experts caution that firms will remain hesitant without clarity on political stability and contract enforcement. Legal experts have also warned of complex international law issues surrounding control of Venezuela’s resources.

Chevron remains the only major US company operating in Venezuela, producing about 250,000 barrels per day through joint ventures with state-owned PDVSA. While increased Venezuelan production could ease diesel shortages and pressure Russia, analysts agree that meaningful change will depend on long-term political and economic stability rather than short-term intervention.