Venezuela’s Oil Revival Is Slower Than the U.S. Hoped

More than half a year after the U.S. overthrew President Nicolas Maduro in Venezuela, major American oil companies have yet to resume operations in the country's largest oil reserves. While Chevron is currently extracting and exporting Venezuelan oil to the U.S., both ExxonMobil and ConocoPhillips have not returned, according to recent reports.

Negotiations led by Venezuela's state-owned oil firm PDVSA are reportedly not progressing as quickly as the U.S. administration had hoped when it overthrew Maduro in January. Smaller American oil companies seem more willing to take the risks of operating in the politically unstable country, but large-scale operations have yet to materialize.

In recent months, Venezuela signed deals with smaller U.S. oil companies, such as SLB and Hunt Oil Co., to boost investment in its energy industry. Hunt Oil Company CEO Hunt expressed pride in playing a role in reviving and growing Venezuela's oil and gas production. However, ExxonMobil and ConocoPhillips are taking a cautious approach, with negotiations reportedly stalled due to disagreements over fiscal terms and political stability.

Pacific Coast Energy, a smaller American oil company backed by European investors, is finalizing an agreement with PDVSA to develop and operate oil fields in Venezuela. However, the company's deal is complicated by a dispute with the heirs of the Oswaldo Cisneros business dynasty, which claims ownership of some contested oilfields.