The fixes may be quick, but they won’t do what Trump wants.
US Pushes for Quickest Fixes to Boost Venezuela Oil Output
Bloomberg reports US Pushes for Quickest Fixes to Boost Venezuela Oil Output
The US is in talks with Chevron Corp., other crude producers and the world’s biggest oilfield service providers about a plan to quickly revive output in Venezuela at a fraction of the estimated $100 billion cost for a complete rebuilding.
Oilfield contractors such as SLB Ltd., Baker Hughes Co. and Halliburton Co. would focus their initial efforts on repairing or replacing damaged or outdated equipment and refreshing older drilling sites, according to senior administration officials who asked not to be identified discussing internal plans.
The idea is that with limited investment, Venezuela could boost production by several hundred thousand barrels over the short term, the people said.
The go-fast approach is designed to fulfill the Trump administration’s goal of swiftly increasing crude flows in the wake of the US capture of Venezuelan strongman Nicolas Maduro, generating cash that could be used to help pay for rebuilding the country. Longer term, President Donald Trump’s goal remains an industry revival that would bring output closer to the country’s 1970 peak of roughly 3.75 million barrels per day from current production of less than 1 million.
While analysts say achieving that bigger prize will take at least a decade, there’s plenty of production gains to be had in the near term.
“There’s some low-hanging fruit that you could probably squeeze some life out of once again,” said Tom Liskey, who heads up Latin American research at industry consultant Enverus.
A representative for Halliburton said its goal in Venezuela “is to achieve quick wins and generate immediate production recovery.” Representatives for SLB didn’t immediately respond to messages seeking comment. Baker Hughes declined to comment.
Venezuelan crude sales will make money for both countries and “bring down oil prices even further,” Trump told reporters on Air Force One on Thursday. “We are drilling more oil than at any time in the history of our country, by far. If you add Venezuela to it, it’s a tremendous part of the market.”
Bringing state-of-the-art US equipment and techniques to Venezuela — where the oil industry has been throttled by years of sanctions — can revitalize existing wells and bring new production online within months, the Trump administration officials said. Some analysts have underestimated how dramatically operations could improve under free-flowing, regular relations, one of the people said.
Even so, the country’s existing infrastructure has been plagued by decades of underinvestment and neglect — including in once-prolific areas in the east and around Lake Maracaibo where oil was first discovered a century ago. Environmental liabilities from years of oil spills and jury-rigged installations are another challenge.
Chevron will initially focus on “leveraging what’s on the ground” already in Venezuela, Vice Chairman Mark Nelson said at a White House meeting Jan. 9. The company plans to increase production from its joint ventures with PDVSA by 50% within the next 18 to 24 months, he said. Currently the JVs produce about 240,000 barrels of oil per day.
The company said in a statement that it stands ready to help Venezuela “build a better future while strengthening US energy and regional security.”
Fact Check, Mostly True
Other than Trump’s statements, the article appears to be true.
But so what? It’s all superficial truisms.
Take for example the seemingly important claim that Chevron can boost production by 50 percent from 240,000 barrels a day.
That would be 360,000 barrels a day (an increase of 120,000 barrels a day), which Trump expects to lower prices.
Key Global Oil Production
- Total Output: Global petroleum and other liquid fuels production is expected to be around 103.3 million barrels per day in 2024, rising to 107.7 million by 2026 EIA.
- Top Producers (2025-2026): The United States is the top producer, with roughly 20.1 million barrels/day, followed by Saudi Arabia (10.9M) and Russia (10.8M) World Population Review.
Increase percent = (120,000 / 107,700,000) * 100 = 0.11 percent.
Ohhh! Ahhh! 50 percent Venezuela production increase. So what?
Let’s boost Venezuela by 100 percent. The global impact would be an increase of 0.22 percent.
China and Russia
A reader commented: when looking at the map, notice the Chinese and Russian production near Chevrons in the Orinoco belt. What happens to that?
Also note that at current oil prices, it is unprofitable to drill new US shale wells. So US drilling is slowing down. I can’t imagine them wanting to go to the expense to drill in Venezuela where they will also be unprofitable at current prices.
A Word About Prices
Trump desperately wants lower prices. However, he desperately needs higher prices to for corporations to want to invest in Venezuela.
This caused a Big Trumpian Tizzy (Big TTtm) when Exxon-Mobile’s CEO told Trump that Venezuela was uninvestible.
I discussed the result: Trump Is “Probably Inclined to Keep Exxon Out” of Venezuela
President Trump said he might block Exxon Mobil from drilling in Venezuela after the company’s top executive publicly acknowledged the barriers involved in doing business in the country.
“I’ll probably be inclined to keep Exxon out,” Trump said Sunday evening, speaking to reporters traveling with him aboard Air Force One.
ConocoPhillips CEO Ryan Lance expressed similar reservations about re-entering the country during Friday’s meeting. He told Trump his company is currently the largest nonsovereign credit holder in Venezuela and is owed $12 billion. ConocoPhillips also left the country in 2007.
Trump dismissed the possibility of covering any of those debts. “We’re not gonna look at what people lost in the past,” he said Friday. “You’re gonna make a lot of money, but we’re not going to go back.”
Reflections on the Outside
I rather doubt Exxon cares if it’s excluded. And I doubt ConocoPhillips cares either.
Both are smart enough to understand Trump does not offer “win-win” deals.
Trump offers deals on which he is prone to dramatically change, even cancel, at a moment’s notice.
If anything, Exxon and Conoco are likely relieved to be out.
How Quick is Quick?
Chevron said “within the next 18 to 24 months”
Is that quick?
It now appears Chevron and Halliburton are mostly on their own. And Halliburton is a supplier, not a driller, so it does not care about consequences.
On January 5, 2026, I asked How Long Will it Take to Ramp Up Production of Venezuelan Oil?
Here are responses from AI, the WSJ, and an energy investor who posts on my blog.
All of this quickness depends on how successfully the US can run Venezuela. So that begs the question …
What Are the Odds that the US Can Successfully Run Venezuela?
On January 6, 2026, I asked What Are the Odds that the US Can Successfully Run Venezuela?
History is not kind to the idea. Nonetheless, let’s investigate a current take.
So please check that out, too.
Here’s the result: We have low odds of a meaningless success, even if everything goes according to plan.
Bloomberg failed to point that out, but I will.
Authored by Cyril Widdershoven via oilprice.com……
Venezuela is moving to overhaul its hydrocarbons law, opening the door to deeper foreign and private-sector participation.
The reforms introduce far more flexible operating and fiscal structures, allowing private and mixed companies to take on operational control.
If paired with sanctions relief, the changes could mark a true reopening of Venezuela’s oil sector, shifting policy from ideological rigidity toward pragmatic, investment-led recover
They have made similar overtures in the past to attract investment; only to expropriate it once it was up and running well. No guarantees that won’t happen again. And Trump says that previous expropriated losses will not be recovered.
It will take many years to boost output in a meaningful way.
To put the potential increase in additional perspective, the throughput rating for the recent Keystone pipeline expansion was 830,000 bpd. This administration’s petroleum business savvy sucks.
Just ask the Venezuelan Bolivar if anything in Venezuela can be managed. Look left on that chart of the exchange rate with the USD
Trump wants to ramp up Venezuelan production quickly because he is about to attack Iran, which will threaten approximately 20% of global oil supply which passes through the Straight of Hormuz.
He is not intelligent enough to understand that Venezuelan supply is but a drop in the bucket.
T’s cronies who own Citgo are sure to make out well, I’m sure
AMERIKA FUCK YEA
Yes. Quick fixes can help boost Venezuelan oil production, but not by much. The goal at first should be to offset the decline in production that has already happened in the last month as foreign oil companies, mostly Chinese, have suspended drilling, as they are no longer getting paid for their oil output.
Those payments were being used to repay loans from the Chinese government to Venezuela. What happens to those loans?
My question remains: what happens to the foreign oil companies already working in Venezuela? Will their operations be expropriated and given to US operators? If so, will they sabotage them? Or will the US allow them to continue?
Regardless; even if the US manages to increase Venezuelan oil production by 300k barrels per day, that is an insignificant amount in a 107 million bpd market.
Why do we even care how much oil Venezuela produces? I have been a petroleum engineer since 1975 and I never spent one minute worrying about how much oil Venezuela produced. It won’t make us money it will only cost us money.
The USA is taking 30 to $40% of the gross sales. The US is in charge of ALL oil sales of Venezuela . The money is controlled by the President in a Qatari bank.
our little own nero in action. just ducky
“ it will only cost us money” is guaranteed true when Trump is taking the money for his personal enrichment. Good job proving the point k annavajjhala
The reality is that during the “Gran Apertura” or Grand Reopening, that took place from 1996 to 2000 (before Chavez was elected), production doubled in 4 years, but, the investment was massive. But that was after 25 years of mismanagement. This time, everyone knows where the oil is, it’s just a matter of reaming out the pre-existing wells and improving the pipelines.
The next ‘elected’ Venezuelan President will void all those contracts and investments presently approved by Trump and Rubio. Can the companies recover investments in 5 years??? The population will rise up for sure.
I wonder whos name is on the account the oil moneys in. Who is responsible to regulate it
Maybe the same person who gets the $1BB Peace Committee entry fees
In other economic news, Gold is roaring up and has surpassed $5,300. Silver is at $114.50
rubio sounds like hillary after libya war crime. uniparty strikes again. only RAND PAUL ASKED A DECENT QUESTION. IF a country kidnapped our POTUS, is that an act of war. he did not answer of course. uniparty twats in our empire.
Little Marco looks so sad these days. He has to have sniffed thousands of trump odors by now.
Alex, I’ll take “What are the largest frauds in history”, for $500
Covid response is #1. Our government spent several trillion dollars on utter failure. I hear very little here about this on this site. Interesting to say the least.
Aww boo boo, I’m sorry you don’t get your daily affirmations here. There are plenty of places that provide that.
Here clowns like you get the abuse they’ve earned. You keep coming back, so I guess it fills another need.
Incredible. We’re all impacted by graft, but you’re delusion surrounding Trump has cut off blood flow to your brain. Amazing to see people able to type and hit your level of dysfunction.
You’re a bit peevish… miss your invermectin dose?
realityczech you mistook this site for an ad hominem competition, congrats on earning your being ignored by me, one less person you have the potential to mildly annoy with your daylong diatribes of personal insults.
Same President as under COVID. What would you expect? Same morons voted him back in.
Trump and Biden screwed up covid. No debating that. Pity you won’t take the L for your vote for a celery stick. No longer surprising to see delusional D’s blame everyone but themselves.
listening to rubio, now on hill, and trump always, i feel like i’m listening to Haney from the old show, GREEN ACRES.
I think his motivation is more short-sighted than this. He needs a quick boost talking point so that he can run a lap around the room.
He’s failing in so many areas. If he doesn’t come up with something soon he’s in real trouble.
Iran might be exactly what he needs. He’ll have to figure out how to get around to Saudi Arabia and the UAE, but I would not be surprised if he launches an attack against Iran and says he stopped another war
Too late… he already chucked the protesters under the bus. Promised help was coming, they were encouraged, acted, and got slaughtered for it. No help came.
Think they’re gonna be on our side now?
Unfortunately for the United States, Susie Wiles has been letting Trump watch Landman.
===from zh
trump posted America is back, spx/500 hits 7000!
======
fed debt dynamics
1 year ago fed debt = 36.218 bln
today – 38.513 bln
===
2.3 trln deficit!!!. and that w “postive” gdp growth
jesus! he is effing mo11ron!!!!
alx
Biggest deficits EVER! Everyone says so!
Big Oil wants that oil. They just want it as the lowest price possible or even better getting paid to pump out each barrel.
Methinks that the assumption that just by bribing the Venezuelan political and military elites to capture Maduro means that the US controls Venezuela is grossly over estimated.
This addition to crude supply is much ado about nothing…
But if we must consider: It is that nasty high sulfur 11-14 API sour crude, it can be blended 50-70% with WTI and piped up in a convoluted use of the pipeline network to the midwest and replace some Canadian API 40 sour crude.
The way things are going, our relationship with Canada is ending thanks to Trump as self appointed president of Venezuela.
Phillips has already stated that it can refine about an additional 200,000 bpd FIFW.
Personally, I think that Trump may have taken over Madura’s drug cartel and is combining it with his Honduran cocaine distribution network – obtained through a handy pardon…
Scum rises to the top in politics…
Maduro had no drug cartel.
our CIA has been growing and shipping, heroin, and delivering to usa, for many decades. the mex cartel is also very sophisticated in this business. i’m astounded at how many amerikans blue or red team have no clue how the empire works. i blame the idiot box we all grew up watching……plus easy times. and making gold and silver not be legal tender……….
Can we be sure about that? After all we took him out for that reason (supposedly). Weren’t those his drug boats that Trump blew up? Weren’t those his drug runners that were executed while hanging on to the wreckage in violation of the Geneva Convention?
Hmmmmmmm…
Keep up. We’re onto murdering Americans in the streets.
Phillips 66 just closed their SoCal refinery due to CA Democrat anti business conditions. A different company refinery closes in NorCal in April. Chevron moved its California headquarters to Texas. As Newsom is running for president, he says he is going to stop the 5% California wealth tax the SEIU union is proposing.
Don’t forget about Wells Fargo Wealth Mgmt. leaving for Fla.
Cheap, plentiful cocaine is exactly what America needs to git’er’done!
Here is what I don’t understand. The USA has sanctioned Venezuelan oil production for decades, because the country has been run by socialists. Maduro is out, but the socialists still run the country, and Trump wants them to increase oil production. Dollars will flow to Venezuela and the socialists will benefit. If Trump never cared about having prosperous socialist governments, why remove Maduro? Why not just make a deal where he trades selling drugs for selling oil? Why not drop sanctions on Iran?
Because the true reasons are a bad economy and Epstein distraction.
1) Cuba
2) Guyana
The goal is to overthrow Cuba which won’t last long without Venezuelan oil.
Protect Guyana from Maduro who was threatening to invade to claim the oil rich areas that are currently producing oil led by Exxon and other US companies. If Maduro invaded that would all be seized. With Maduro gone, my guess is Venezuela stops talking about invading Guyana.
Why not just drop sanctions on Cuba too?
You left out the most important part, no security guarantees so these companies are literally all on their own if something bad happens. All risk little reward, only a Trump moron would take that bet.
it’s a cult. i know a woman, very close to me, who grew up with jim jones in the same one horse town in indiana. i can envision Trump having a rally in Guyana and pass around the kook aide.
Damn, no points for “Big Trumpian Tizzy (Big TTtm)”
You are wrong on most things that require critical economic analysis.
And yet here you are.
Thanks Mr. Sturges for the deep, insightful economic analysis!
@John Sturges: Please enlighten us.
Oh, wait, you’re one of those 2-name Russian bots…
Care to identify some of those most things? The only thing I noticed that was blatantly wrong is the implication that service companies were deciding to increase pumping capacity to benefit from increased production. Wrong, service companies perform what an operator like Chevron contracted and their entire reward is payment for fulfilling the contract.
John why do you insult your intelligence by visiting blogs you think are almost always wrong? That’s so far from clever I don’t even know what to call it.
Trump is getting his slice off the Venezuelan oil sales.
That’s all that matters.
Caligula wasn’t just a sexual pervert. He stole with both hands too.
Is he? He confabulates so, that’s all.
He is? Cite sources, please.