Donald Trump’s Energy Dominance Plan Hits Roadblock as US Oil Giants Call Venezuela ‘Uninvestable’

US President-elect Donald Trump's plan for "energy dominance" has faced a major challenge in its initial stages. In a recent meeting with the Trump administration, US oil companies have described Venezuela's oil market as "untouchable" and "uninvestable."

This blunt warning from the companies regarding the country with the world's largest oil reserves could undermine Trump's future plans, which saw Venezuela as a strategy to control global oil prices.

Completely Destroyed Infrastructure

Companies have clearly stated that Venezuela is not only lacking investment, but its entire oil system is completely defunct.

Years of lack of proper maintenance have reduced refineries and drilling machinery to scrap. Companies say that restarting oil production there means starting from scratch.

This requires not only money but also a significant amount of modern technology, which Venezuela's current dilapidated system is unable to handle.

A Web of Sanctions and Legal Uncertainty

A major reason for American companies' withdrawal is the stringent sanctions imposed on Venezuela and the legal ambiguity there.

The companies told Trump that there is no legal guarantee for any agreement under the Maduro regime. If the government changes or policies reverse tomorrow, billions of dollars in investment could be wiped out in a single stroke.

According to the companies, the term "uninvestable" is used not just for economic gain, but also because of security and reputational risks.

Historic Decline in Production Capacity

Venezuela once produced more than 3 million barrels of oil daily, but that production has now fallen to just a few million barrels.

The companies presented data indicating that pressure in oil wells has dropped so much that extraction is no longer as easy as before.

This requires massive investment-intensive "enhanced oil recovery" projects, for which the current environment is not conducive.

Trump's Strategy and the Contradictions of Companies

Donald Trump wants the United States to manage its dependence on oil imports from countries like Venezuela on its own terms, thereby reducing domestic oil prices. However, Chevron and other major companies have a different stance.

They have made it clear that they will not invest their shareholders' money in places where there is no hope of return. This contradiction could become a diplomatic and economic headache for the Trump administration.

Looking Toward Neighboring Countries and Alternative Markets

The meeting also discussed that if the United States fails in Venezuela, it could directly benefit countries like Russia and China, which are already trying to gain a foothold there.

However, American companies have suggested that instead of wasting energy on Venezuela, it would be more profitable to focus on emerging and stable oil markets like Guyana or Brazil, where investment is secure and legal processes are transparent.