Drilling Down into the Uncertain Future of Venezuelan Energy

Attorneys Stephanie Connor, Andres Fernandez, Jim Noe, Tahlia Townsend, Patrick Childress, Ambassador Nathan Sales, Elizabeth Craddock and Manny Levitt, along with Senior Policy Advisor Beth Viola, published a Law360 article exploring the future of Venezuela's energy sector. The U.S. capture of Nicolás Maduro on January 3, 2026, and subsequent indictment on narcotrafficking charges ushered in a new era of uncertainty, disrupting regional oil supply chains, provoking questions about sanctions compliance and forcing companies to take a second look at their operations in the South American country. As the authors explain, though President Donald Trump has pledged to rebuild Venezuela's oil and gas infrastructure, concrete advancements will require powerful incentives and sustained investment over time to repair and modernize extraction and refining capabilities. The article summarizes Venezuela's vast oil reserves and potential, reviews U.S. sanctions on Venezuelan government officials and entities, discusses postures taken by the Trump Administration and U.S. energy companies toward Venezuela, and snapshots the conditions leading businesses to take a more measured approach toward entering or reentering Venezuela's market.

The authors also published a Holland & Knight alert on this topic.

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