Top oil lobbyist sees industry interest in Venezuela — with caveats
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American Petroleum Institute President Mike Sommers speaks in March 2025. Photo: Aaron M. Sprecher/Bloomberg via Getty Images
The head of the U.S. oil industry's leading lobbying group on Thursday predicted "tremendous interest" in Venezuela from American companies — but only if "big requirements" around security and other areas are met.
Why it matters: President Trump is hoping that U.S. producers invest in reviving output from Venezuela's broken-down oil fields.
- American Petroleum Institute's Mike Sommers' comments' capture the industry's cautious posture ahead of top company executives' meeting on Friday with Trump at the White House.
Driving the news: "There are going to be parameters that have to be put in place before there's significant investment in Venezuela," Sommers, API's president and CEO, said on Fox News.
- He cited security guarantees. "You're essentially operating in the jungle, in the Amazon jungle in Venezuela," he said of Venezuela's Orinoco Belt that holds massive reserves. "And we know that a number of guerrilla forces have taken control in that area."
- Another condition is that "we need the rule of law reestablished. We need capitalism to flourish in this country," Sommers said.
- He said that Trump and Energy Secretary Chris Wright, based on his comments in recent days, understand that the companies have "big requirements."
Between the lines: Sommers' interview signals how the industry may have some interest, but will need convincing amid opportunities they're pursuing in the U.S. and elsewhere.
- He noted that when the Hugo Chávez regime expropriated Exxon and ConocoPhillips assets in 2007, the U.S. produced around 5 million barrels per day.
- But then the shale boom took off, and U.S. output is now well over 13 million barrels per day.
- And "also since then, we found more oil throughout the world," Sommers said, citing Exxon's huge finds in Guyana as one example.
"We have energy security in this country now, but it is important that for future reserves, that we look for other places," he said.
- "So I compliment the president of the United States for taking this bold action, because we know we're going to need a lot more oil far into the future," Sommers said.
Reality check: Chevron is currently the only U.S. oil producer in Venezuela now, operating under a special U.S. license.
- Analysts say that while interest and risk tolerance will vary by company, overall the biggest and more expert players will likely be hesitant to make large investments in Venezuela.
Catch up quick: Trump administration officials yesterday said the U.S. would directly handle Venezuelan oil sales and revenue "indefinitely" via U.S.-controlled accounts in major global banks.
- Trump's lieutenants claim this will benefit both Americans, and Venezuelans who haven't shared in resource wealth under the Maduro regime.
What we're watching: Major U.S. producers have thus far said little about their interest, so all eyes will be on Friday's White House huddle.
