What Venezuela's oil could mean for the industry in Texas

The oil industry has been in the spotlight after the U.S. seized Venezuelan leader Nicolás Maduro. President Trump met with top oil executives last week, urging them to invest in Venezuela's oil resources. Now, the impact could be mixed for Texas. As Houston Public Media's Natalie Weber reports, the state is home to many oil companies and the most refining capacity in the country.

UNIDENTIFIED PROTESTER: (Chanting) Not a penny, not a dollar.

UNIDENTIFIED PROTESTERS: (Chanting) Not a penny, not a dollar.

UNIDENTIFIED PROTESTER: (Chanting) We won't pay for war and slaughter.

NATALIE WEBER, BYLINE: At a recent protest in Houston, demonstrators criticized the United States' involvement in Venezuela. This is Caleb Kurowski, a local organizer.

CALEB KUROWSKI: I think it's very obvious that this is really only about oil.

WEBER: President Trump has said from the beginning that this operation is, at least in part, about control of Venezuela's oil. Houston is known as the energy capital of the world, but the impacts of U.S. operations in Venezuela could also reach to other parts of the United States, including parts of Texas, from the Permian Basin to cities with refineries along the Gulf Coast. The state produced nearly half of the nation's crude oil in 2024 and accounts for about a third of the country's refining capacity. That's according to the U.S. Energy Information Administration under the Department of Energy. This is Texas Oil & Gas Association president Todd Staples.

TODD STAPLES: Immediately, I think Texas refiners can benefit from the existing production because of the heavy crude that's produced in Venezuela that's not produced in Texas.

WEBER: A few days after Maduro's capture, Venezuela's state-owned oil company confirmed it was negotiating crude oil sales with the U.S. Rice University professor Mark Jones, who studies Latin American politics, says the oil-rich Permian Basin in West Texas could experience a slight negative impact from these exports.

MARK JONES: Where the Permian and Texas more generally will be adversely affected is simply if this drives down overall oil prices.

WEBER: Oil service companies which manufacture and repair equipment used for oil extraction and transportation could see a boost from relaxed sanctions on Venezuela. Jones says many of these companies are based in Houston or have a strong presence in the city.

JONES: They all have experience working in Venezuela and they all are very well positioned to return.

WEBER: The ability of oil companies to invest in Venezuela, Jones says, depends on the country's stability, and many Americans are skeptical of U.S. involvement there.

JONES: If you're benefiting the U.S. economy, it's probably to the detriment of someone, potentially Venezuela.

WEBER: Some Houston area oil companies have had ties to Venezuela for decades. Chevron is the only major American oil producer still operating there. The company's vice chairman, Mark Nelson, said Friday that the company was prepared to ramp up production. Recently, a judge approved the sale of Houston-based refiner Citgo, which is owned by Venezuela's state-run oil company, to pay off part of the country's debts. International courts have also ordered Venezuela to pay billions of dollars to ConocoPhillips and ExxonMobil. Those remarks later prompted Trump to say he was, quote, "inclined" to keep the company out of Venezuela. ConocoPhillips CEO Ryan Lance said Friday there will likely need to be conversations about Venezuela's debt and how to finance investments there.

ED HIRS: They've already been burned, some of them more than once. You know, they're not going to put good money after bad money.

WEBER: That's University of Houston energy fellow Ed Hirs. He compares U.S. operations in Venezuela to interventions in Iraq and Libya.

HIRS: There's no reason to think that the Trump administration's going to succeed where these others failed.

WEBER: For now, major oil companies in Texas and beyond remain in conversations with top U.S. officials. For NPR News, I'm Natalie Weber in Houston.

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