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Donald Trump has said the US will “run” Venezuela until a transition can take place – and tap its vast oil reserves to sell to other nations.
Speaking to reporters hours after Nicolas Maduro and his wife were captured, Mr Trump declared that “very large” American oil firms would spend billions of dollars to fix “badly broken infrastructure” in the South American country.
Venezuela has the largest proven oil reserves of any country in the world – and the president has claimed US occupation “won’t cost a penny” as the country will be reimbursed from “money coming out of the ground”.
Only one US energy company, Chevron, continues to operate in Venezuela.
Venezuela crisis: Follow the latest developments
What is the situation right now?
At the moment, a US embargo on all Venezuelan oil is in full effect.
And while Mr Trump eventually wants to get “oil flowing”, analysts have warned that a lack of infrastructure and investment means this ambition could take years to realise.
“There are still many questions that need to be answered about the state of the Venezuelan oil industry, but it is clear that it will take tens of billions of dollars to turn that industry around,” Third Bridge’s Peter McNally said.
Despite these logistical hurdles, Mr Trump has vowed “to take back the oil that, frankly, we should have taken back a long time ago”.
A Chevron spokesperson said: “Chevron remains focused on the safety and wellbeing of our employees, as well as the integrity of our assets. We continue to operate in full compliance with all relevant laws and regulations.”
Another US oil giant, ConocoPhillips, said it is “monitoring developments in Venezuela and their potential implications for global energy supply and stability”.
A spokesman added: “It would be premature to speculate on any future business activities or investments.”
Other industry leaders – including ExxonMobil, Shell,…
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