The Treasury Department is actively reviewing regulatory changes to “depenalize” Venezuelan crude that goes to market, improving mechanisms for expediting the return of oil sales proceeds to support governance, security services, and social needs. Trump’s recent executive order further secures Venezuelan oil revenues by blocking courts and creditors from seizing these funds, safeguarding them for stabilization efforts. While Chevron remains the sole U.S. oil company currently authorized to operate in Venezuela, Bessent anticipates smaller private firms to swiftly reenter the market, with Chevron potentially increasing its presence. ExxonMobil and ConocoPhillips retain substantial claims from historic nationalizations but have expressed willingness to invest, contingent on legal and commercial reforms.
In parallel, Bessent announced meetings with IMF and World Bank heads to discuss Venezuela’s reengagement with these institutions after over two decades of isolation. The IMF has not formally assessed Venezuela since 2004, and Venezuela fully repaid World Bank loans by 2007. The U.S. is also prioritizing the modernization of Venezuela’s degraded electrical grid, critical to scaling up oil production and regional energy security. Despite the easing of financial restrictions, the U.S. government maintains warnings regarding the security of American citizens in Venezuela amid ongoing militia activity and escalating risks on the ground.
This article was curated and published as part of our South American energy market coverage.
