President Donald Trump's plan to place US energy companies at the centre of efforts to rebuild Venezuela's oil industry has drawn questions over whether the strategy would deliver near-term economic benefits for the United States, particularly for Texas, where many refineries are configured to process heavy crude.
According to reporting by CBS News and comments made by Trump at a recent news conference, the proposal follows a sharp escalation in US involvement in Venezuela after a US-led operation resulted in the capture of President Nicolás Maduro and his wife, alongside indications of a possible political transition.
Trump said American oil companies would be tasked with rebuilding Venezuela's petroleum infrastructure, arguing that US participation would help restore production in the South American nation while strengthening Washington's influence in global energy markets.
However, analysts cited by CBS News and other US media outlets said that converting political change into increased oil output and tangible economic returns would likely take years, citing extensive infrastructure damage and long-standing operational challenges.
Structural Challenges in Venezuela's Oil Sector
Venezuela holds what industry data describe as the world's largest proven oil reserves, but output has declined sharply over the past decade amid mismanagement, US sanctions and chronic underinvestment, according to analysts and energy industry assessments.
Production has fallen from several million barrels per day in earlier years to significantly lower levels, while key infrastructure — including refineries, pipelines and processing facilities — has deteriorated, limiting the country's ability to increase exports.
Energy analysts interviewed by CBS News said major assets in the Orinoco Belt and across Venezuela's domestic refining system are operating well below capacity, with ageing equipment and logistical constraints continuing to hamper production.
Venezuelan crude is also predominantly heavy and high in sulphur, requiring specialised refining capacity. Historically, much of that oil was shipped to refineries along the US Gulf Coast, particularly in Texas and Louisiana, which are designed to handle dense crude grades.
US sanctions imposed in recent years largely halted Venezuelan exports to the United States, prompting refiners to replace supplies with heavy crude from countries such as Canada and Mexico, according to market data and refinery disclosures.
Market Impact and Outlook for Texas
In the short term, oil markets have reacted more to geopolitical uncertainty than to expectations of increased supply, analysts told CBS News. Prices for benchmarks including West Texas Intermediate (WTI) and Brent crude have shown volatility following news of the US operation and potential policy shifts involving Venezuela.
Energy analysts said any benefit to Texas refiners from renewed Venezuelan oil flows would depend on a sustained recovery in production, a process that could take several years even with significant investment.
Refiners in Texas have already adjusted supply chains in response to the prolonged absence of Venezuelan crude, and existing contracts and logistics may reduce the immediate impact of any policy reversal, analysts added.
Currently, Chevron is the only major US oil company maintaining a limited operational presence in Venezuela through joint ventures, operating under US government licences. Other American energy firms have said they are monitoring developments but remain cautious due to political risk, infrastructure conditions and regulatory uncertainty.
Industry executives cited by The Associated Press and CBS News have said any broader return by US companies would require stable governance, legal clarity and enforceable contract protections.
Energy analysts broadly agree that rebuilding Venezuela's oil industry would require billions of dollars in investment and extensive infrastructure rehabilitation. Even under favourable political conditions, analysts said recovery would likely be gradual rather than immediate.
As Washington weighs its next diplomatic and economic steps, US energy companies and refiners are expected to continue assessing developments in Venezuela, balancing potential long-term opportunities against the risks posed by one of the world's most complex and damaged oil sectors.
