US Oil and Gas Giants Summoned to Discuss Venezuela
Nearly 20 oil and gas executives are scheduled to meet with President Donald Trump and senior officials at the White House on Friday. The meeting is being billed as a who's who of the US oil and gas industry, with the presence of major players being asked to discuss plans to revive Venezuela's energy sector.
The list of attendees includes representatives from Chevron, Exxon Mobil, ConocoPhillips, and senior oil and gas figure Harold Hamm. The Trump administration is encouraging these companies to assess the opportunities for reviving Venezuela's oil production, which has also been hampered by years of infrastructure damage, minimal investment, and the withdrawal of many foreign companies.
Several global oil trading companies, such as Vitol and Trafigura, are also expected to attend, along with Spain's Repsol, which has a stake in one of Venezuela's major fields. India's Reliance is also reportedly invited, demonstrating that the discussions are not just about US companies but also involve international players.
Although Venezuela has the world's largest oil reserves, pipelines and production facilities are reportedly in disrepair due to prolonged neglect. Therefore, recovery in this sector is considered to be far from instant and could take years, leading many companies to exercise caution before making major investments.
One analyst said the funding needs could reach up to US$100 billion over 10 years, and Trump said industry players would "rebuild the entire infrastructure" at a cost of at least US$100 billion. However, the scale of such costs means the recovery target could extend beyond Trump's term.
In the short term, the government's plan to begin selling Venezuelan oil held in storage amid the US naval blockade has already impacted the market. Vitol, which recently received a license from the US Treasury Department to sell Venezuelan oil, has reportedly begun exploring the interests of refineries to absorb the supply.
Meanwhile, oil and gas executives are said to want to support Venezuela's economic recovery goals while benefiting US interests, but still demand assurances of physical and financial security. These concerns arise because the country's situation is considered unstable, particularly following the arrest of Nicolás Maduro by US forces, as well as the past experience of nationalizing Exxon and ConocoPhillips assets under the previous administration.
5 key points from the narrative:
1. Nearly 20 top US oil and gas officials met with Trump at the White House to discuss the recovery of Venezuela's energy sector.
2. Participants included oil and gas giants (Chevron, Exxon, ConocoPhillips), global traders (Vitol, Trafigura), and Repsol; Reliance was also invited.
3. Venezuela's infrastructure is severely damaged; recovery is expected to be expensive and lengthy—estimated costs could reach US$100 billion over 10 years.
4. Venezuela's stalled oil sales plans (due to the blockade) are starting to impact the market; Vitol has already moved to approach refiners.
5. Companies are interested, but demand guarantees of security and certainty, given the political risks and past track record of asset nationalization. (asd)
Source: Newsmaker.id
