Major oil companies move slowly in Venezuela: The US Treasury's differentiated strategy

U.S. officials under the Trump administration have outlined a bifurcated approach to reviving investments in Venezuela’s oil sector. According to recent statements by Treasury Secretary Scott Bessent, the U.S. government expects very different paces for large oil corporations compared to independent companies operating in the South American country.

Two Speeds for Investment in Venezuelan Oil

Secretary Bessent noted that major oil companies are likely to proceed cautiously and at a slow pace when making new investments in Venezuela. In contrast, smaller independent firms are expected to move more quickly with their operations. This difference in pace is due to risk considerations and each operator’s regulatory compliance capacity.

The statement was made during a speech at the Minnesota Economic Club, where Bessent outlined the general principles of the tax and asset control policies that the Treasury will implement in the coming months.

The Treasury’s Supervisory Role in Oil Sector Revival

A key aspect of the strategy is the active role the Treasury will play in overseeing operations. The federal agency will be responsible for monitoring all transactions related to the sale and management of oil assets. Bessent clarified that the Treasury would control the flow of funds returning to Venezuela, ensuring each disbursement aligns with the U.S. government’s foreign policy objectives.

This oversight function will operate under the direct coordination of President Donald Trump and Secretary of State Marco Rubio, thus consolidating centralized control over investment mechanisms and profit repatriation.

How the New Sanctions and Relief Measures Are Structured

The proposed approach involves a selective management of the sanctions system. The Treasury would follow criteria to lift restrictions on certain Venezuelan entities while simultaneously imposing controls on others. This asymmetric sanctions strategy would allow the U.S. government to maintain pressure tools while selectively authorizing oil operations. The slower pace for large oil companies reflects this regulatory uncertainty and the desire to maintain granular control over each phase of oil operations.