President Trump said Monday that American energy companies could be active in Venezuela far sooner than many expect, predicting that operations could begin within a year and a half — and possibly even earlier.
“I think we can do it in less time than that, but it’ll be a lot of money,” Trump said in an interview with NBC News.
According to the president, the financial burden would initially fall on the private sector. “A tremendous amount of money will have to be spent, and the oil companies will spend it, and then they’ll get reimbursed by us or through revenue,” he said.
Trump’s comments came in the wake of a U.S. military operation that resulted in the capture of Venezuelan dictator Nicolás Maduro. Following that development, the president said the United States would maintain a role in the country “as it pertains to oil.”
He explained that before any large-scale drilling can resume, American firms would first need to overhaul Venezuela’s deteriorated oil infrastructure, which has suffered years of neglect and mismanagement.
At present, Chevron is the only major U.S. oil company still operating in Venezuela.
Other major players exited long ago. ConocoPhillips and Exxon Mobil pulled out nearly two decades ago after then-president Hugo Chávez nationalized foreign-owned energy assets.
Trump said the scale of investment required would be massive. “It’ll be a very substantial amount of money,” he said. “But they’ll do very well.”
“And the country will do well,” the president added.
He also argued that restoring Venezuela as a major oil producer would have broader economic benefits for the United States. “Having a Venezuela that’s an oil producer is good for the United States because it keeps the price of oil down,” Trump said, adding that expanded drilling would “reduce oil prices.”
Trump said that while his administration did not notify U.S. oil companies in advance of the military operation, discussions had been taking place in more general terms. Officials had been “talking to the concept of, ‘what if we did it?’” he said.
“The oil companies were absolutely aware that we were thinking about doing something,” Trump said. “But we didn’t tell them we were going to do it.”
Looking ahead, Energy Secretary Chris Wright is expected to meet later this week with executives from Exxon and ConocoPhillips to discuss Venezuelan oil, according to Bloomberg News.
NBC News, citing a White House official, reported that Wright has been assigned to lead the administration’s efforts to restore and rebuild Venezuela’s oil infrastructure.
{Matzav.com}
