Trump: Oil ‘Beginning to Flow’ from Venezuela

President Donald Trump said oil production is “beginning to flow” from Venezuela as Washington and Caracas work together to restore energy output following the capture of former Venezuelan dictator Nicolás Maduro.

Trump made the announcement in a post on Truth Social, describing cooperation between the two countries as productive.

“Delcy Rodríguez, who is the President of Venezuela, is doing a great job, and working with U.S. Representatives very well,” Trump wrote.

Rodríguez Responds After Maduro’s Capture

Delcy Rodríguez became Venezuela’s leader in January, after U.S. forces captured Maduro on Jan. 3. Maduro is currently facing narco-terrorism and drug trafficking charges in the United States.

Rodríguez responded to Trump’s remarks in a March 4 post on X.

“I thank President [Trump] for the kind willingness of his government to work together on an agenda that strengthens binational cooperation for the benefit of the peoples of the United States and Venezuela,” Rodríguez wrote.

Initially, Rodríguez condemned the U.S. operation that removed Maduro and called for his return, describing the military action as a violation of international law.

President Trump warned at the time that Rodríguez could face consequences if she did not “do what’s right.”

Since then, her government has moved toward greater cooperation with Washington.

U.S. Treasury Opens Door for Oil Development

On Feb. 10, the U.S. Treasury Department issued a general license allowing exploration, development, and production of oil and gas in Venezuela.

The license authorizes U.S. citizens and companies to conduct transactions with the Venezuelan government related to energy development, including new drilling and production projects.

Before the decision, Venezuela’s state oil company PDVSA had sharply reduced production due to a U.S. sanctions blockade aimed at pressuring Maduro.

On Feb. 13, the Treasury Department’s Office of Foreign Assets Control (OFAC) issued a broader license allowing major energy companies to resume operations in Venezuela.

Those companies include:

• BP
• Chevron
• Eni
• Shell
• Repsol

“Venezuela holds tremendous economic potential, but years of instability, corruption, and economic mismanagement have limited the nation’s growth and prosperity,” a Treasury spokesperson said.

“These general licenses invite American and other aligned companies to play a constructive role in supporting economic recovery and responsible investment.”

World’s Largest Oil Reserves

Venezuela possesses the largest commercially viable oil reserves in the world, estimated at roughly 300 billion barrels, representing about 20% of global reserves.

However, high production costs have historically limited the country’s ability to fully exploit those reserves.

According to a Feb. 13 report from S&P Global, Venezuelan oil projects currently require a breakeven price of about $64 per barrel, one of the highest in South America.

“But reforms under U.S. oversight could lower costs to $45–50/b within the next few years,” the report states.

Energy Secretary Visits Venezuela

U.S. Energy Secretary Chris Wright visited Venezuela last month during a three-day trip focused on improving the country’s energy infrastructure and economic outlook.

During a press briefing alongside Rodríguez, Wright said the partnership could dramatically increase production.

“This year, we can drive a dramatic increase in Venezuelan oil production, in Venezuelan natural gas production, in Venezuelan electricity production, to increase the job opportunities, the wages, and the quality of life for all of the Venezuelans across the country,” Wright said.

“It will also enormously benefit the United States, and the Western Hemisphere, and the future partnership for all of us.”

Oil Output Expected to Rebound

A February 12 report from the International Energy Agency (IEA) said Venezuela’s oil production dropped by 210,000 barrels per day, falling to 780,000 barrels per day in January.

However, the agency said output could soon increase following Washington’s decision to allow American and international firms to export Venezuelan oil.

“Its output is expected to rebound after Washington authorised a pathway for U.S.-incorporated companies—including U.S.-based subsidiaries of international firms—to export Venezuelan oil,” the report said.

Energy Prices Rising Amid Iran War

Oil markets have also been affected by the ongoing Iran War.

U.S. and Israeli forces launched coordinated strikes against Iran on Feb. 28 under Operation Epic Fury.

As a result, Brent crude oil prices have surged.

On Feb. 27, Brent crude closed at $72.48 per barrel.

By early Thursday morning, prices had climbed to $82.58 per barrel, an increase of nearly 14%.

Gas prices in the United States have also risen.

According to the American Automobile Association, the national average price for regular gasoline reached $3.25 on March 5, up from $2.98 a week earlier.

White House Preparing Energy Strategy

Speaking to reporters on March 2, Secretary of State Marco Rubio said the administration is preparing a broader strategy aimed at lowering energy costs for Americans.

Rubio did not provide additional details about the upcoming initiatives.

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