Shares of U.S. oil companies jumped Monday after President Donald Trump indicated that major American oil firms could gain access to Venezuela’s vast oil reserves. Trump made the announcement following the arrest of Venezuelan President Nicolas Maduro.
“We’re going to have our very large U.S. oil companies go in, spend billions of dollars, fix the badly broken oil infrastructure, and start making money for the country,” Trump said on Saturday.
Venezuela holds the world’s largest oil reserves, but decades of mismanagement, nationalisation, and sanctions have severely curtailed production.
Chevron, the only major U.S. company currently operating in Venezuela, climbed 7.3% in premarket trading.
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Refiners including Phillips 66, Marathon Petroleum, Valero Energy, and PBF Energy rose 5% to 16%, reflecting optimism about access to Venezuelan heavy crude, which suits U.S. Gulf Coast refineries.
Oil prices, however, remained largely flat amid ample global supplies. Trump confirmed that the embargo on Venezuelan oil exports would remain in effect for now.
The U.S. action may pave the way for the return of assets seized by Venezuela under Hugo Chavez in 2007. Analysts at J.P. Morgan noted that ConocoPhillips and Exxon Mobil have arbitration awards pending, totalling nearly $12 billion in claims. Shares of ConocoPhillips rose 7.5%, while Exxon gained 4.3%.
Oilfield services companies critical to ramping up Venezuelan production also saw gains. Baker Hughes, Halliburton, and SLB rose 7% to 9%, benefiting from potential contracts to restore infrastructure.
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Analysts caution that meaningful production recovery will take time due to political instability, decayed infrastructure, and years of underinvestment. Venezuela, which produced 3.5 million barrels per day in the 1970s, now averages about 1.1 million bpd, roughly 1% of global supply.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
