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Key takeaways

  • The US already generated $1 billion (€0.93 billion) in oil revenues for the interim government in Venezuela.
  • Chevron is substantially expanding its operations while Exxon Mobil explores a possible return.
  • Analysts doubt whether the targeted 40 per cent production growth is technically feasible.

Venezuelan oil revenues have been under strict US control since the ousting of President Nicolas Maduro. US Energy Secretary Chris Wright told Bloomberg television that total sales now exceed one billion dollars (0.93 billion euros).

Return of US oil giants

The Trump administration expects short-term contracts to bring in another $5 billion (€4.65 billion) in additional Venezuelan oil revenues in the coming months. Washington is managing these cash flows and immediately funnelling the profits to the interim government until an officially elected administration can run the country independently again.

This revival is attracting the biggest US players in the oil sector, with Chevron already implementing aggressive expansion plans to increase production fivefold. At the same time, Exxon Mobil is holding talks with local authorities and collecting data to prepare for a possible return. The US government is actively mediating to make neglected infrastructure such as that in the Orinico Basin profitable again.

Ambitious growth figures

Though big question marks still hang over future Venezuelan oil revenues and their production targets. The US government is targeting production growth of 30 to 40 per cent within one year, which would substantially increase the current output of one million barrels a day.

Experts, however, call these forecasts optimistic, pointing to years of neglect and mismanagement under the previous regime of Maduro. A stable political environment and billions in new investment are crucial to achieve this growth. Without a thorough renovation of the oil infrastructure, it remains uncertain whether Venezuela can reclaim its former role as a global player in the oil market.

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