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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SLB Ltd., Baker Hughes Co. and Halliburton Co. would focus their initial efforts on repairing or replacing damaged or outdated equipment and refreshing older drilling sites, according to senior administration officials who asked not to be identified discussing internal plans.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 TT^tm) 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.

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