• Venezuela’s acting president asked lawmakers to approve reforms opening doors to foreign investment in the country’s massive oil reserves
• The proposal comes less than two weeks after US forces captured former President Nicolás Maduro in a military operation
• Trump administration aggressively pushing for American oil companies to gain access while opposition leader meets with president at White House

CARACAS, Venezuela (TDR) — Venezuelan Acting President Delcy Rodríguez submitted a proposal Thursday to reform the nation’s hydrocarbon law, seeking to facilitate greater US oil investment less than two weeks after American special forces captured former President Nicolás Maduro in a surprise military strike.

During her first state of the union address to Venezuela’s National Assembly, Rodríguez outlined the reforms as aimed at incorporating investment flows into oil fields that have never received development or lack infrastructure. The move represents a significant shift for the oil-rich nation as it navigates competing pressures from the Trump administration and loyalists to the captured former president.

Trump Demands Greater Oil Industry Access

The hydrocarbon law reform proposal directly addresses demands from President Donald Trump, who announced immediately after Maduro’s capture that American oil companies would invest billions to rebuild Venezuela’s deteriorating petroleum infrastructure.

“We’re going to have our very large United States oil companies — the biggest anywhere in the world — go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure,” Trump said during a press conference at Mar-a-Lago on January 3.

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Rodríguez told lawmakers the reforms would facilitate integration of investment into new fields and areas lacking infrastructure. She emphasized that oil revenue would fund two new state-managed accounts dedicated to social services and economic development projects.

“We brought the draft reform to the hydrocarbons law to incorporate the projects of the anti-blockade law, so that investment funds are incorporated and to protect our hydrocarbons,” Rodríguez stated during her address.

The acting president’s speech came on the same day opposition leader María Corina Machado met with Trump at the White House, highlighting the political tensions surrounding Venezuela’s future leadership.

Major Oil Companies Express Skepticism

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Despite Trump’s optimistic projections, major American petroleum firms remain cautious about returning to Venezuela after previous nationalizations cost them billions in lost assets and unpaid arbitration awards.

ExxonMobil CEO Darren Woods expressed significant reservations about re-entering the Venezuelan market during recent statements to investors.

“If we look at the legal and commercial constructs and frameworks in place today in Venezuela, today it’s uninvestable,” Woods said. “Significant changes have to be made to those commercial frameworks, the legal system, there has to be durable investment protections, and there has to be a change to the hydrocarbon laws in the country.”

ConocoPhillips and ExxonMobil both exited Venezuela in 2007 after then-President Hugo Chávez nationalized the oil sector. International arbitration courts later ordered Venezuela to pay ConocoPhillips over $10 billion and ExxonMobil over $1 billion, with only a fraction of those awards ever collected.

“ConocoPhillips is monitoring developments in Venezuela and their potential implications for global energy supply and stability. It would be premature to speculate on any future business activities or investments,” company spokesperson Dennis Nuss said in a statement.

Venezuela Sits On World’s Largest Oil Reserves

Venezuela possesses approximately 303 billion barrels of proven crude oil reserves, representing roughly 17% of global reserves and surpassing even Saudi Arabia. However, production has collapsed from peak levels above 3 million barrels per day in the late 1990s to current output estimated at only 800,000 to 1 million barrels daily.

The country’s extra-heavy crude oil requires specialized technical expertise and refining capacity to extract and process, making infrastructure investment particularly crucial for any production recovery.

Chevron remains the only major American oil company still operating in Venezuela, producing approximately 150,000 to 240,000 barrels per day under special US Treasury Department licenses.

“Chevron remains focused on the safety and wellbeing of our employees, as well as the integrity of our assets. We continue to operate in full compliance with all relevant laws and regulations,” the company stated.

Political Complexity Surrounds Oil Industry Future

Rodríguez’s hydrocarbon reform proposal attempts to balance Trump administration pressure for American corporate access with political realities inside Venezuela, where Maduro’s government structure remains largely intact despite his capture.

Before her speech Thursday, government supporters gathered at the presidential palace chanting support for the imprisoned former leader.

“Maduro, resist, the people are rising,” supporters shouted, according to media reports from Caracas.

Rodríguez has maintained that Maduro remains Venezuela’s legitimate president despite being held in a Brooklyn federal jail on narcoterrorism charges. She demanded proof of life for Maduro and his wife Cilia Flores, who were both captured during the January 3 military operation.

“There is only one president in this country, and his name is Nicolas Maduro Moros,” Rodríguez declared in her first remarks following the US military strike.

Meanwhile, the White House praised Rodríguez’s cooperation even as Trump met with opposition leader Machado.

“Trump liked what he saw with Rodriguez and considered her extremely cooperative,” White House press secretary Karoline Leavitt told reporters Thursday.

Investment Timeline Remains Uncertain

Energy analysts warn that even with legal reforms, rebuilding Venezuela’s petroleum sector could require years and tens of billions in capital investment before production significantly increases.

Council on Foreign Relations senior fellow Brad Setser noted that Venezuela produced 3 million barrels daily two decades ago and was near 2.5 million as recently as 2016, suggesting potential exists for recovery with proper investment.

However, the country’s crushing debt burden of nearly $150 billion in foreign obligations, combined with unpaid arbitration awards to oil companies, complicates financing arrangements for new development.

Trump told reporters Monday he believes American companies could restore Venezuelan production “in less than 18 months” if they commit capital, though he declined to specify total costs.

“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,” Trump said.

Will American oil giants risk billions in Venezuela despite past nationalizations and uncertain political stability, or will Rodriguez’s reforms fail to attract the investment Trump demands?

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