Shares of major US oil companies rose sharply in pre-market trading on Monday following US President Donald Trump’s announcement that the United States would take an active role in Venezuela’s oil industry after a weekend military intervention that led to the capture of President Nicolas Maduro.
Chevron Corp, the only major US oil company currently operating in Venezuela, saw its shares climb as much as 10 percent in early trading. ConocoPhillips rose nearly 9 percent, while Exxon Mobil Corp gained more than 3 percent, reflecting investor optimism over potential new opportunities in the South American oil sector.
Trump, speaking at a press conference on Saturday, said Washington would leverage US oil companies to invest heavily in Venezuela’s oil infrastructure, describing the country’s facilities as “badly broken” and in urgent need of repair.
“We’re going to have our very large United States oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said.
Venezuela holds the world’s largest proven oil reserves, estimated at 303 billion barrels. Despite this, production has fallen sharply over the past decade, largely due to state control, chronic underinvestment, mismanagement, and the impact of international sanctions.
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Analysts said Trump’s statement and the military intervention have injected a wave of optimism among investors, particularly in companies with direct or potential exposure to Venezuelan crude. Chevron’s recent operations in Venezuela, mostly concentrated on joint ventures and upstream activities, could expand significantly if US authorities facilitate new contracts or investment opportunities.
“This is a dramatic development for the global oil market,” said an energy analyst in London. “The prospect of US companies entering Venezuela in a coordinated way could restore production capacity over the medium term and reshape regional oil dynamics.”
The pre-market gains also reflect broader market sentiment. Oil prices have already been volatile in recent months due to geopolitical tensions and supply concerns. With Trump signalling a potential injection of capital and technical expertise into Venezuela’s struggling sector, investors appear to be pricing in a revival of the country’s output.
Venezuela’s oil sector has long been the backbone of its economy, accounting for a significant share of government revenue and foreign exchange earnings. However, years of political turmoil, economic mismanagement, and sanctions imposed by the US and European Union have resulted in a steep decline in production. Output, which once exceeded three million barrels per day, has fallen to a fraction of that level, contributing to severe economic and humanitarian crises.
Trump’s announcement coincides with the capture of Maduro, whose arrest by US forces has intensified global scrutiny of the Venezuelan crisis. Market watchers say any US involvement in the country’s energy sector could face logistical and diplomatic challenges, including coordination with existing local operators and potential resistance from Maduro loyalists or international stakeholders.
Despite these uncertainties, Wall Street investors appeared to embrace the short-term prospects. “The market sees this as an opportunity for US firms to gain first-mover advantage in one of the largest untapped oil reserves in the world,” said a New York-based oil market strategist.
Beyond immediate share gains, energy analysts note that long-term success will depend on the ability of US companies to stabilize operations, restore infrastructure, and navigate Venezuela’s complex legal and political landscape. Even with US backing, decades of underinvestment and corruption in the country’s oil sector present significant hurdles.
Still, the sharp jump in Chevron, ConocoPhillips, and Exxon Mobil shares underscores how geopolitical developments can directly influence investor sentiment in the energy sector, particularly when linked to countries with abundant natural resources.
As the situation evolves, market participants will monitor both US policy decisions and the operational realities in Venezuela, which will ultimately determine whether the surge in oil stocks can be sustained beyond the initial reaction to Trump’s announcement.
