Venezuela Opens Oil Industry to Foreign Investment, Seeks Warmer US Ties

Venezuela is entering a new political phase under acting President Delcy Rodríguez, who used her first state of the union address to signal major shifts in the country’s economic and diplomatic stance. Speaking just days after former President Nicolás Maduro was removed from power, Rodríguez emphasized opening the state-run oil sector to foreign investors and fostering more constructive ties with the United States.

Rodríguez highlighted the importance of transforming Venezuela’s oil industry, which has long been a focal point of the nation’s economy. She called on lawmakers to approve reforms that would allow foreign companies to participate in exploiting Venezuela’s vast crude reserves.

“Venezuela, in free trade relations with the world, can sell the products of its energy industry,” she said.

The acting president outlined plans to channel revenues from oil exports into two sovereign wealth funds: one supporting struggling healthcare services and another dedicated to public infrastructure.

Much of this infrastructure, initially developed under Hugo Chávez, has suffered deterioration over the years. Hospitals, for instance, are reportedly under-equipped, forcing patients to provide essential medical supplies like syringes and surgical screws.

A Shift in Diplomacy

Instagram | @bengalurunoww | Rodríguez is pushing oil reforms to invite foreign companies and modernize Venezuela’s key energy sector under U.S. oversight.

Rodríguez’s address marked a clear change in tone from previous administrations. While criticizing the U.S. seizure of Maduro, she also encouraged renewed diplomacy between the two nations. Her 44-minute speech avoided the extended, fiery rhetoric of past leaders, instead advocating for dialogue without hatred or intolerance.

“Let us not be afraid of diplomacy. I ask that politics not be transformed, that it not begin with hatred and intolerance,” she stated.

The day before her speech, she briefed the media for four minutes, claiming her administration was releasing prisoners detained under Maduro’s rule. However, human rights groups have verified only a fraction of these releases.

Balancing Relations with the U.S.

Rodríguez appears to be walking a delicate line between defending Venezuela’s sovereignty and aligning with U.S. expectations. She displayed a portrait of Maduro and his wife, Cilia Flores, during her speech and urged the U.S. to respect Maduro’s dignity, who is currently held in a Brooklyn jail facing drug-trafficking charges.

“If one day, as acting president, I have to go to Washington, I will do so standing up, walking, not being dragged. I’ll go standing tall … never crawling,” she said.

Rodríguez’s emerging diplomatic approach contrasts with opposition leader María Corina Machado, who recently met with President Donald Trump in Washington. Machado, whose party reportedly won the 2024 presidential elections, presented her Nobel Peace Prize medal to Trump and expressed confidence in U.S. support, though her political role in Venezuela remains uncertain.

Political Climate in Caracas

Despite Rodríguez’s moderate tone, Venezuela’s state-run media continues to display pro-government messaging, including statements from Iranian and Russian officials condemning U.S. actions.

State-orchestrated rallies and demonstrations in Caracas carried slogans supporting Maduro’s return, while teachers marched through the streets denouncing U.S. intervention. Police presence was heavy, and pro-government graffiti covered city walls with messages like “To doubt is to betray.”

Instagram | @maxwell.briceno | Ordinary Venezuelans live with deep uncertainty and rising prices, even as some hope foreign investment may help the economy recover.

Experts, such as David Smilde from Tulane University, note that while rhetoric has softened, Venezuela’s government seems intent on complying with U.S. economic demands while maintaining political control. On the streets, many citizens remain hesitant to share opinions, reflecting fear of government reprisal or uncertainty about the country’s direction.

Pablo Rojas, a 28-year-old music producer in Caracas, remarked, “It’s a complete sea of uncertainty, and the only one who now has the power to make decisions is the United States government.”

Economic and Political Uncertainty

Rodríguez’s push for foreign investment in the oil sector comes amid growing uncertainty about Venezuela’s political and economic future. Oil refineries continue to operate normally, even as the U.S. takes control of additional Venezuelan oil tankers. The administration’s efforts to engage foreign investors aim to stabilize the economy, but political tensions and unclear leadership dynamics complicate the outlook.

Venezuela is navigating a period of significant change under Delcy Rodríguez’s acting leadership. With a focus on opening the oil industry to foreign investment and improving U.S. relations, the country faces both opportunities and challenges.

While her approach signals a shift toward diplomacy and economic reform, the political landscape remains uncertain, with citizens and international observers closely watching how these developments unfold.