A big part of Trump’s Plan for Venezuela involves U.S. oil companies investing a lot of money into getting Venezuela’s oil industry back on its feet. But the oil companies don’t seem to be leaping at the opportunity. This is from Politico:
Administration officials have told oil executives in recent weeks that if they want compensation for their rigs, pipelines and other seized property, then they must be prepared to go back into Venezuela now and invest heavily in reviving its shattered petroleum industry, two people familiar with the administration’s outreach told POLITICO on Saturday. The outlook for Venezuela’s shattered oil infrastructure is one of the major questions following the U.S. military action that captured leader Nicolás Maduro.
But people in the industry said the administration’s message has left them still leery about the difficulty of rebuilding decayed oil fields in a country where it’s not even clear who will lead the country for the foreseeable future.
“They’re saying, ‘you gotta go in if you want to play and get reimbursed,’” said one industry official familiar with the conversations.
The offer has been on the table for the last 10 days, the person said. “But the infrastructure currently there is so dilapidated that no one at these companies can adequately assess what is needed to make it operable.”
So the oil execs must have known that Trump planned to invade Venezuela and seize assets for several weeks. But this article is saying none of them seem all that eager to go along with the plan.
A central concern for U.S. industry executives is whether the administration can guarantee the safety of the employees and equipment that companies would need to send to Venezuela, how the companies would be paid, whether oil prices will rise enough to make Venezuelan crude profitable and the status of Venezuela’s membership in the OPEC oil exporters cartel. U.S. benchmark oil prices were at $57 a barrel, the lowest since the end of the pandemic, as of the market’s close on Friday.
Trump has already announced that the oil companies will be rebuilding the infrastructure. He said something about them being “reimbursed,” but gave no details about what that would mean. Probably Trump doesn’t know what it means, either. He’s not a policy details guy.
But this is reminding me of the Bush Administration’s half-assed planning for “regime change” in Iraq, which is to say they had no plan other than ousting Saddam Hussein. There’s an excellent retrospective of What Went Wrong in Iraq at the Brookings Institute, The Seven Deadly Sins of Failure in Iraq: A Retrospective Analysis of the Reconstruction. It’s very much worth reading, especially since most of the “sins” are already present in Trump’s Venezuela gambit. And I doubt very much that the oil execs are eager to march into Venezuela anytime soon. If within a few months the country is reasonably peaceful they might send people into the old oil fields to do an assessment. And even then they might say no.
There’s a good backgrounder on Venezuela’s oil industry and its relationship with the U.S. at Wikipedia. That relationship is old and messy. Venezuela is sitting on the world’s largest known oil reserve. But much of it is “heavy crude,” which is more expensive to extract and refine than most other oil. Plus the existing oil infrastructure in Venezuela is old and decayed, and oil production in Venezuela has slowed to a trickle for the past few years. I don’t see the oil execs agreeing to anything until all the details are worked out. And that’s going to take a while.
There are more complications. Trump has rejected Venezuelan opposition leader and Nobel Peace Prize winner María Corina Machado as Maduro’s puppet replacement. Instead, he has decided that Venezuela’s Vice President Delcy Rodríguez should take over. Trump has told reporters that Rodriguez already has been sworn in as president, although there’s no indication from Venezuela that has happened. And Rodriguez seems to not want to be a puppet.
The 56-year-old former labour lawyer struck a defiant tone in her televised speech on Saturday night. She condemned the abduction of Maduro and his wife, Cilia Flores, and demanded their return.
“What is being done to Venezuela is an atrocity that violates international law. History and justice will make the extremists who promoted this armed aggression pay,” she said. “There is only one president in Venezuela and his name is Nicolás Maduro.”
So the regime change thing may take some more work.
Josh Marshall also says that no one person in the Trump administration is really in charge.
Let me reiterate a general point I’ve made in other posts. I don’t think there’s any actual reason we’re invading Venezuela or trying to decapitate its government or whatever we’re doing. I think there are two or three different factions in the government each pushing a very hostile policy toward Venezueala for differing reasons. Meanwhile, Trump thinks it’s cool and has a personal beef with Maduro. That combination of factors created a lot of forward momentum within the U.S. government with nothing pushing back in the opposite direction. That gets you to today. My point is that it’s a mistake to think there’s a “real” reason mixed in with other subterfuges and rationales, or that it’s important to find out which one the “real” reason is. It’s not that linear or logical.
And I think it’s safe to say the whole bleeping Trump Administration has gotten itself into something that’s way over its head. Not the first time, of course. But they’re about to learn that the military operation that seized Maduro was the easy part. They’re at great risk of finding themselves in an unpopular quagmire that will drag on for many months and possibly years.


