Trump urged U.S. oil companies to work in Venezuela 0 15

U.S. oil companies can help repair and modernize Venezuela's oil infrastructure, and in return, they will receive subsidies from the American authorities. This idea was expressed on Monday, January 5, by U.S. President Donald Trump in an interview with the American television channel NBC News.

According to Trump, U.S. companies could complete a project aimed at expanding oil production in Venezuela within 18 months. However, the American leader noted that this would require "significant amounts of money." Nevertheless, the companies that enter Venezuela "will then receive compensation from us or from the revenue," Donald Trump stated.

On January 5, Reuters reported that the largest U.S. oil companies - Exxon Mobil, ConocoPhillips, and Chevron - are hesitant to respond to Trump's call to expand operations in Venezuela. Previously, American players were major investors in Venezuelan oil, but in the mid-2000s, the authorities of the Latin American country nationalized the local oil sector. Since then, oil production in the country has decreased to a third of its peak level - not least due to retaliatory sanctions from the U.S.

Industry analysts, in conversations with Reuters, suggested that the return of American players to Venezuela would be hindered by both the lack and deterioration of local infrastructure and uncertainty regarding the political future of the country. Furthermore, the legal framework for such a presence of Americans in Venezuela and Washington's long-term policy in this direction after the U.S. military operation remains unclear.

U.S. oil sector stocks rise after Maduro's takeover

Although representatives of U.S. oil sector players are cautious in their statements regarding Venezuela, investors believe they will be able to gain and maintain access to local oil reserves, Reuters writes.

Thus, shares of Chevron - the only major American company that continued operations in Venezuela in recent years - rose by five percent on January 5. Shares of refining companies Marathon Petroleum, Phillips 66, and Valero Energy increased in price by three to nine percent on the same day. Stocks of related companies - Baker Hughes, Halliburton, and SLB - are also rising.

Trump: No new elections in Venezuela for now

After the U.S. military operation and the takeover of Nicolás Maduro, Delcy Rodríguez, who previously held the position of Vice President of Venezuela, assumed the duties of head of state. However, according to the local constitution, the interim government must set a date for new presidential elections within 30 days. Trump claims that this will not happen.

"First, we must get the country back on the right track. Elections cannot be held," the head of the White House stated in an interview with NBC News.

Rodríguez, in her statements in the wake of Maduro's takeover, emphasized both her loyalty to the abducted ruler and called for "peace and cooperation" from the U.S. Trump, in turn, threatened that Rodríguez would pay a "high price" in the absence of cooperation with Washington.