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White House Touts Venezuelan Oil Transfer as Industry Flags Long Road to Revival

Analysts warn Venezuela's extra-heavy crude plus decayed infrastructure preclude a quick rebound.

Overview

  • The White House said interim Venezuelan authorities will hand over 30 to 50 million barrels of sanctioned oil to the United States.
  • Coverage reports a U.S. military operation led to the detention of Nicolás Maduro, and President Trump urged American oil companies to restart extraction in Venezuela.
  • Industry experts say major firms remain wary due to political risk and decades-long investment horizons, with Rystad estimating $8–9 billion annually for 14 years to rebuild output.
  • Venezuelan crude is predominantly extra-heavy with high sulfur and low hydrogen, requiring costly diluents, upgrading and complex refining that raise costs and emissions.
  • Chevron is the only U.S. operator still in-country, contributing about 27% of national production, and analysts expect any short-term supply or price effects to be limited given current market conditions.