As captured Venezuelan president, Nicolas Maduro, appeared in a New York Court experts say the plans announced rom US oil companies to effectively take over the country’s oil production and reserves may have a global impact on the sector.

Folling the operations in which US special forces captured Maduro and his wife from a compound in Caracas  the Trump administration signalled that US companies would be involved in the restoration of Venezuelan crude production.

Director of equity research, at Morningstar, Allen Good, has said the plan may allow international oil companies to recover funds they have been seeking to obtain since the country’s oil industry was nationalised 18 years ago.

“Venezuela has substantial oil reserves, reportedly larger than those of Saudi Arabia, making it appealing to US oil companies,” he explained. “Currently, Chevron is the only major US operator remaining in Venezuela since Exxon and ConocoPhillips left in 2007 after the government nationalised their assets. Given its significant presence – holding stakes in four key joint ventures and an offshore gas field which may now be fully developed – Chevron is best positioned to benefit from US involvement in Venezuelan crude restoration projects. Although the company paused reporting on production or reserves, current reports suggest that Chevron exports around 150,000 barrels of oil per day under current US licenses.”

Good added: “Exxon and ConocoPhillips have sought billions in remuneration through arbitration since leaving the country but have had little success collecting this. Opening the country could potentially allow for re-entry and collection of awards or restoration of assets.

“Although the US interest makes sense initially, following years of neglect and sanctions, Venezuela’s oil industry will require tens of billions in investment to lift production meaningfully. Furthermore, the bulk of its reserves are extra-heavy oil, which is costly and capital-intensive to extract. Oil companies will need to be cautious about deploying capital until there is greater regulatory and contractual certainty. While Chevron may be able to add incremental production in the near term with US approval, meaningful volume increases are likely years away. With this in mind, the possibility of US companies developing Venezuela’s oil reserves remains far from certain.”

The situation remains fluid with US secretary of state Marco Rubio telling US media that while falling short of actually saying the US was now in charge the country it was “running the direction” that makes things move forward.

He added that despite  was also asked if he thinks Interim President Delcy Rodríguez being sworn in as interim president that the US did not see the current regime as legitimate.

US President Donald Trump has however said that the US has plans for additional actions which were not needed at the weekend but has said those plans are still in place and will be enacted if the US felt the situation was not heading in the desired direction.