Venezuela's New President Steered $500,000 to Trump's Inauguration in 2017

In 2017, as Donald Trump prepared to assume the U.S. presidency, Venezuela’s then-foreign minister, Delcy Rodríguez, directed a $500,000 donation to the president’s inauguration from Citgo, a subsidiary of Venezuela’s state oil company according to reports. The move was an early attempt to open the door for American investment in Venezuela’s oil industry. At the time, Venezuela’s socialist administration was struggling with economic instability and a collapsing oil sector. Rodríguez’s outreach to Trump, including efforts to secure meetings with top executives and influence political allies, did not bear fruit immediately. However, it helped establish her as a prominent figure in U.S. business and political circles as documented.

Rodríguez’s strategy reflected a broader effort to revive Venezuela’s moribund economy. The country holds the world’s largest proven oil reserves, but years of mismanagement, underinvestment, and U.S. sanctions had left its infrastructure in tatters. The donation to Trump’s inauguration was part of a broader charm offensive, which also included hiring Trump’s ex-campaign manager as a lobbyist. While the initial outreach failed, it laid the groundwork for her eventual rise as Venezuela’s interim president.

With the recent removal of Nicolás Maduro, Trump has reiterated U.S. interest in investing billions of dollars in rebuilding Venezuela’s energy infrastructure. The president has suggested that American oil companies will spend large sums to fix the country’s oil infrastructure and begin making profits according to Trump. Trump has also hinted that the U.S. may reimburse these companies for their efforts, saying, “they’ll get reimbursed by us or through revenue” as stated.

Representatives from major U.S. oil companies, including Chevron, ConocoPhillips, and ExxonMobil, are set to meet with the Trump administration this week to discuss Venezuela as reported. Energy Secretary Chris Wright is expected to lead these talks. Chevron is the only U.S. company currently operating in Venezuela under a special license from the Treasury Department. ExxonMobil and ConocoPhillips left the country in 2007, following demands by Hugo Chávez for majority stakes in oil ventures according to CBS News.

The Trump administration is also seeking cooperation from top Venezuelan officials, including Diosdado Cabello and Vladimir Padrino. U.S. officials have put Cabello on notice that he could be a target unless he helps maintain order and align with U.S. interests as noted. Padrino, the defense minister, is also under scrutiny, with U.S. officials seeing his collaboration as essential to avoiding a power vacuum according to The New York Times.

Trump has ruled out a rapid transition to a democratically elected government, saying, “we have to fix the country first” according to Dow Jones. Instead, he has endorsed a transition led by Maduro’s inner circle, including Rodríguez, whom he views as a key partner. The administration is also working to ensure that Venezuela’s oil industry becomes accessible to U.S. companies, a goal it sees as critical to both economic and strategic interests as reported.

Why Did This Happen?

The Trump administration’s renewed interest in Venezuela is driven by the country’s vast oil reserves and the potential for U.S. companies to benefit from a more open market. Venezuela’s oil sector has long been a focal point for international investment, but political instability and sanctions have limited access. With Maduro gone and a more cooperative interim administration in place, the administration sees an opportunity to reengage with the industry according to Seeking Alpha.

The U.S. has also expressed concern over Venezuela’s role in narcotics trafficking and its ties to Iran. Administration officials have made it clear that any cooperation must include a crackdown on these issues. Rodríguez, now interim president, is expected to play a central role in ensuring these conditions are met as reported.

How Did Markets React?

Oil prices rose in the wake of the U.S. military’s capture of Maduro, with investors speculating on the potential for increased production from Venezuela. Analysts, however, have cautioned that any meaningful increase in output will take years, even with substantial foreign investment as analysts have cautioned. The market’s initial reaction has been cautious optimism, with some oil futures settling below their pre-weekend levels as uncertainty persists according to Investing.com.

U.S. refineries along the Gulf Coast are well-suited to process Venezuela’s heavy crude, and there is potential for increased oil flows to the U.S. Strategic Petroleum Reserve . However, the long-term demand for additional oil remains uncertain, with global markets already grappling with oversupply concerns as reported.

What Are Analysts Watching Next?

Experts are closely monitoring how quickly U.S. oil companies decide to reinvest in Venezuela. Chevron, ConocoPhillips, and ExxonMobil have all been engaged in discussions with the Trump administration, but none have committed to new investments according to CBS News. Chevron, which is already operating in Venezuela, has not indicated whether it will expand its presence. ConocoPhillips and ExxonMobil have declined to comment or speculate on future activities as reported.

The Trump administration has also suggested that U.S. oil companies could begin operations in Venezuela within 18 months as stated. This timeline is significantly shorter than estimates from industry experts, who warn that infrastructure rebuilding will take years. Trump has downplayed these concerns, saying, “a tremendous amount of money will have to be spent and the oil companies will spend it” according to Business Standard.

As the administration works to solidify its control over Venezuela’s oil industry, investors are watching for signs of progress. The ability of U.S. companies to secure long-term access to Venezuela’s oil reserves will be a key factor in the market’s future response as reported.