Trump Announces Drilling Plans for Venezuelan Oil
President Donald Trump informed reporters on Thursday while on Air Force One that U.S. companies are set to start drilling for Venezuelan oil “soon.”
This statement came after Trump’s attendance at the World Economic Forum in Davos, Switzerland, where he also introduced a new initiative aimed at establishing a “peace commission.”
“We’re going to begin drilling very soon. The biggest companies in the world are involved, and they’re actively negotiating right now,” Trump stated. “The public is quite excited about this because we represent the nation, and we excel in these matters.”
He added, “They’re going to earn more money than ever before, and, of course, we will also see significant returns.”
Trump explained that this initiative would not only enrich the U.S. and Venezuela but also contribute to lowering oil prices in the United States. “As you know, the price of oil is down to around $2.30 per gallon in many places, and it’s even lower in some areas, like $1.99,” he noted.
The current Venezuelan government, led by “acting president” Delcy Rodríguez, took charge following a U.S. law enforcement operation that resulted in the capture of Nicolas Maduro and his wife, Cilia Flores, in Caracas on January 3.
Recently, Trump has mentioned that Rodríguez is cooperating with the U.S. and consulting closely with Secretary of State Marco Rubio. They spoke by phone last week.
At the time of Maduro’s arrest, Rodríguez served as both the vice president and oil minister. As of now, she has yet to appoint a new oil minister and reportedly continues to fulfill her responsibilities from both positions.
Hours prior to Trump’s announcement, local news described how Congress, influenced by Delcy’s brother Jorge Rodriguez, had passed a bill proposing reforms to Venezuela’s rigid socialist hydrocarbon laws. El Nacional reported on the government’s consideration of flexible royalties to invite “great” foreign investment and facilitate private sector involvement in Venezuelan oil.
The proposed reforms also include stronger “legal guarantees” for oil investments and the establishment of an independent dispute resolution mechanism.
According to a Reuters report analyzing the draft reforms, these amendments would permit foreign and domestic companies to “run their own oil fields, manage production and receive sales proceeds through a new contractual structure” even as minority stakeholders in the state-owned company PDVSA.
Rodriguez, on social media, stated, “We are closely observing the vital debates in Congress concerning partial amendments to the Hydrocarbon Organic Law.” She added, “This reform is aimed at enhancing energy sovereignty, attracting investment, and developing untapped fields for the benefit of the Venezuelan people.”
