Trump Eyes Return of U.S. Energy Investment to Venezuela Amid Debt Crisis
As President Donald Trump expresses interest in revitalizing U.S. energy investment in Venezuela, the South American nation grapples with significant financial obligations to American energy firms stemming from past disputes over oil agreements.
Venezuela, once a prominent player in global oil, shifted its relationship with international energy companies in the mid-2000s. The government increased its control over the oil sector.
Between 2004 and 2007, foreign companies were pushed to renegotiate their contracts, which reduced the role and profits of private companies.
This led some major oil companies to leave the country.
ExxonMobil and ConocoPhillips exited Venezuela in 2007 and pursued legal action against the government. International courts sided with the companies, awarding them billions of dollars in compensation.
Venezuela’s economy is estimated to be around $82.8 billion in 2025. However, its debt is nearly 200% of that amount. The nation also faces approximately $60 billion in unpaid bonds, with total foreign debt reaching about $150 billion when including loans from Russia and China.
Venezuela’s state-owned oil company, PDVSA, defaulted on a bond payment in 2020, which has put Citgo in the legal spotlight as creditors seek to recover owed funds.
Despite holding the world’s largest oil reserves, Venezuela has only paid a small part of its debts.
Chevron is the only U.S. energy company still working in Venezuela.
President Trump stated his desire for U.S. oil companies to invest in Venezuela, rebuild its damaged oil infrastructure, and generate revenue for the United States. He emphasized the role of American talent in developing Venezuela’s oil industry and suggested that the U.S. could sell Venezuelan oil globally once the sector is restored.
Venezuela’s substantial debt presents challenges for U.S. energy companies considering new investments, despite Trump’s commitment to re-engagement.
