promises

United States President Donald Trump has called on oil executives to rush back into Venezuela as the White House looks to quickly secure $100bn in investments to revive the country’s ability to fully tap into its expansive reserves of petroleum.

Trump, as he opened the meeting with oil industry executives on Friday, sought to assure them that they need not be sceptical of quickly investing in and, in some cases, returning to the South American country with a history of state asset seizures as well as ongoing US sanctions and the current political uncertainty.

“You have total safety,” Trump told the executives. “You’re dealing with us directly and not dealing with Venezuela at all. We don’t want you to deal with Venezuela.”

Trump added: “Our giant oil companies will be spending at least $100bn of their money, not the government’s money. They don’t need government money. But they need government protection.”

Trump welcomed the oil executives to the White House after US forces earlier on Friday seized their fifth tanker over the past month that has been linked to Venezuelan oil. The action reflected the determination of the US to fully control the exporting, refining and production of Venezuelan petroleum, a sign of the Trump administration’s plans for ongoing involvement in the sector as it seeks commitments from private companies.

“At least 100 Billion Dollars will be invested by BIG OIL, all of whom I will be meeting with today at The White House,” Trump said on Friday in a predawn social media post.

The White House said it invited oil executives from 17 companies, including Chevron, which still operates in Venezuela, as well as ExxonMobil and ConocoPhillips, which both had oil projects in the country that were lost as part of a 2007 nationalisation of private businesses under former President Nicolas Maduro’s predecessor, Hugo Chavez.

“If we look at the commercial constructs and frameworks in place today in Venezuela, today it’s un-investable,” said Darren Woods, ExxonMobil CEO. “And so significant changes have to be made to those commercial frameworks, the legal system, there has to be durable investment protections and there has to be change to the hydrocarbon laws in the country.”

Benjamin Radd, a senior fellow at the UCLA Burkle Center for International Relations, told Al Jazeera that he had “noted the hesitation and less-than-full-throated enthusiasm for re-entering the Venezuelan market”, citing Woods, who told the gathering that the company had its assets there seized twice already.

“The bottom line is that until Trump can outline and provide assurances of a plan towards political stability, it will continue to be a risky endeavour for these oil companies to re-engage Venezuela. And what is there is a regime change in Iran in the days or weeks or months to come, and all of a sudden that re-emerges as a place where Western oil companies can do business? Even though the reserves don’t equal what Venezuela has, the risk is far less, and the infrastructure is more sound,” Radd said.

Other companies invited included Halliburton, Valero, Marathon, Shell, Singapore-based Trafigura, Italy-based Eni and Spain-based Repsol, as well as a vast swath of domestic and international companies with interests ranging from construction to the commodity markets.

Wait and see

Large US oil companies have so far largely refrained from affirming investments in Venezuela, as contracts and guarantees need to be in place. Trump has suggested that the US would help to backstop any investments.

Venezuela’s oil production has slumped below one million barrels per day (bpd). Part of Trump’s challenge to turn that around will be to convince oil companies that his administration has a stable relationship with Venezuela’s interim President Delcy Rodriguez, as well as protections for companies entering the market.

While Rodriguez has publicly denounced Trump and the abduction and ouster of Maduro, the US president has said that to date, Venezuela’s interim leader has been cooperating behind the scenes with his administration.

Most companies are in a wait-and-see mode as they await terms from the Venezuelans, stability and wait to find out how much the US government will actually help, said Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security.

Those like Chevron that are already in there are in a better position to increase investments as they “already have sunk costs”, Ziemba pointed out.

Ziemba said she expects a partial ramp-up in the first half of this year as the volumes that were going to China – Venezuelan oil’s largest buyer – are redirected and sold via the US. “But long-term investments will be slow,” she said as companies wait to find out about US commitments and Venezuelan terms.

Tyson Slocum, director of the consumer advocacy group Public Citizen’s energy programme, criticised the gathering and called the US military’s removal of Maduro “violent imperialism”. Slocum added that Trump’s goal appears to be to “hand billionaires control over Venezuela’s oil”.

So far, the US government has not said how the revenue from the sale of Venezuelan oil will be shared and what percentage of the sales would be given to Caracas.

Ziemba said she was worried that “if funds do not go to Venezuela for basic goods, among other local needs, there will be instability that will deepen the country’s economic crisis“.

In the news conference on Friday, Trump said the US had a formula for distributing payments. UCLA’s Radd said that “if the US can or will guarantee security and stability, it makes sense for it to expect a return on investment in that sense. But then this makes it sound more like a mafia-style ‘racket’ than a government-led operation”, he told Al Jazeera.

Meanwhile, the US and Venezuelan governments said on Friday they were exploring the possibility of restoring diplomatic relations between the two countries, and a delegation from the Trump administration arrived in the South American nation on Friday.

CARACAS, Venezuela — At the White House, President Trump vows American intervention in Venezuela will pour billions of dollars into the country’s infrastructure, revive its once-thriving oil industry and eventually deliver a new age of prosperity to the Latin American nation.

Here at a sprawling street market in the capital, though, utility worker Ana Calderón simply wishes she could afford the ingredients to make a pot of soup.

“Food is incredibly expensive,” says Calderón, noting rapidly rising prices that have celery selling for twice as much as just a few weeks ago and two pounds of meat going for more than $10, or 25 times the country’s monthly minimum wage. “Everything is so expensive.”

Venezuelans digesting news of the United States’ brazen capture of former President Nicolás Maduro are hearing grandiose promises of future economic prowess even as they live through the crippling economic realities of today.

“They know that the outlook has significantly changed but they don’t see it yet on the ground. What they’re seeing is repression. They’re seeing a lot of confusion,” says Luisa Palacios, a Venezuelan-born economist and former oil executive who is a research scholar at the Center on Global Energy Policy at Columbia University. “People are hopeful and expecting that things are going to change but that doesn’t mean that things are going to change right now.”

Whatever hope exists over the possibility of U.S. involvement improving Venezuela’s economy is paired with the crushing daily truths most here live. People typically work two, three or more jobs just to survive, and still cupboards and refrigerators are nearly bare. Children go to bed early to avoid the pang of hunger; parents choose between filling a prescription and buying groceries. An estimated eight in 10 people live in poverty.

It has led millions to flee the country for elsewhere.

Those who remain are concentrated in Venezuela’s cities, including its capital, Caracas, where the street market in the Catia neighborhood once was so busy that shoppers bumped into one another and dodged oncoming traffic. But as prices have climbed in recent days, locals have increasingly stayed away from the market stalls, reducing the chaos to a relative hush.

Neila Roa, carrying her 5-month-old baby, sells packs of cigarettes to passersby, having to monitor daily fluctuations in currency to adjust the price.

“Inflation and more inflation and devaluation,” Roa says. “It’s out of control.”

Roa could not believe the news of Maduro’s capture. Now, she wonders what will come of it. She thinks it would take “a miracle” to fix Venezuela’s economy.

“What we don’t know is whether the change is for better or for worse,” she says. “We’re in a state of uncertainty. We have to see how good it can be, and how much it can contribute to our lives.”

Trump has said the U.S. will distribute some of the proceeds from the sale of Venezuelan oil back to its population. But that commitment so far largely appears to be focused on America’s interests in extracting more oil from Venezuela, selling more U.S.-made goods to the country and repairing the electricity grid.

The White House is hosting a meeting Friday with U.S. oil company executives to discuss Venezuela, which the Trump administration has been pressuring to open its vast-but-struggling oil industry more widely to American investment and know-how. In an interview with the New York Times, Trump acknowledged that reviving the country’s oil industry would take years.

“The oil will take a while,” he said.

Venezuela has the world’s largest proven oil reserves. The country’s economy depends on them.

Maduro’s predecessor, the fiery Hugo Chávez, elected in 1998, expanded social services, including housing and education, thanks to the country’s oil bonanza, which generated revenues estimated at some $981 billion between 1999 and 2011 as crude prices soared. But corruption, a decline in oil production and economic policies led to a crisis that became evident in 2012.

Chávez appointed Maduro as his successor before dying of cancer in 2013. The country’s political, social and economic crisis, entangled with plummeting oil production and prices, marked the entirety of Maduro’s presidency. Millions were pushed into poverty. The middle class virtually disappeared. And more than 7.7 million people left their homeland.

Albert Williams, an economist at Nova Southeastern University, says returning the energy sector to its heyday would have a dramatic spillover effect in a country in which oil is the dominant industry, sparking the opening of restaurants, stores and other businesses. What’s unknown, he says, is whether such a revitalization happens, how long it would take and how a government built by Maduro will adjust to the change in power.

“That’s the billion-dollar question,” Williams says. “But if you improve the oil industry, you improve the country.”

The International Monetary Fund estimates Venezuela’s inflation rate is a staggering 682%, the highest of any country for which it has data. That has sent the cost of food beyond what many can afford.

Many public sector workers survive on roughly $160 per month, while the average private sector employee earned about $237 last year. Venezuela’s monthly minimum wage of 130 bolivars, or $0.40, has not increased since 2022, putting it well below the United Nations’ measure of extreme poverty of $2.15 a day.

The currency crisis led Maduro to declare an “economic emergency” in April.

Usha Haley, a Wichita State University economist who studies emerging markets, says for those hurting the most, there is no immediate sign of change.

“Short-term, most Venezuelans will probably not feel any economic relief,” she says. “A single oil sale will not fix the country’s rampant inflation and currency collapse. Jobs, prices and exchange rates will probably not shift quickly.”

In a country that has seen as much strife as Venezuela has in recent years, locals are accustomed to doing what they have to in order to get through the day, so much so that many utter the same expression

“Resolver,” they say in Spanish, or “figure it out,” shorthand for the jury-rigged nature of life here, in which every transaction, from boarding a bus to buying a child’s medicine, involves a delicate calculation.

Here at the market, the smell of fish, fresh onions and car exhaust combine. Calderon, making her way through, faces freshly skyrocketing prices, saying “the difference is huge,” as the country’s official currency has rapidly declined against its unofficial one, the U.S. dollar.

Unable to afford all the ingredients for her soup, she left with a bunch of celery but no meat.

Cano and Sedensky write for the Associated Press. Sedensky reported from New York. AP writer Josh Boak in Washington contributed to this report.