U.S. to Supervise Venezuelan Oil Sales Under New Plan

On Wednesday, Energy Secretary Chris Wright announced a shift in strategy regarding Venezuelan crude oil. This plan, which is under the Trump administration, aims to oversee the sale and control revenue from Venezuelan oil exports to revitalize production and ensure a stable flow of oil.

“Yes, we are trying something fundamentally different,” Wright remarked during Goldman Sachs’ annual energy conference in Miami. He emphasized the move away from simply stockpiling oil, stating that the intention is to distribute and sell it to U.S. refineries and international markets to boost oil supply.

This announcement comes shortly after President Trump revealed that Venezuela would be sending approximately 50 million barrels of crude oil, estimated at about $2.8 billion at current prices, to the United States.

Wright clarified that the entire process would be closely monitored by the U.S. government, with the revenue going into an account managed by Washington. He added, “From there, those funds can flow back to Venezuela and benefit the Venezuelan people.” His comments underline the idea that U.S. influence is crucial for inciting necessary changes in the Latin American country.

Venezuela once thrived on its oil industry, which was the foundation of its economy, supporting extensive energy exports. The country boasts proven oil reserves exceeding 300 billion barrels, surpassing many major oil-producing nations like Saudi Arabia, Iran, and Kuwait.

Wright pointed out that many factors, including poor governance and sanctions, have decimated the Venezuelan economy, transforming what was once a powerhouse into a struggling state.

He also noted that efforts to restart exports will involve addressing crude oil currently held in storage and offshore facilities. The immediate focus seems to be on getting that oil moving again.

“We intend to transport and sell the crude oil that is stored and in floating storage offshore,” Wright mentioned, indicating a long-term goal of resuming regular sales from Venezuela.

He highlighted that the U.S. would supply diluents—light oil needed to process Venezuelan heavy crude, simplifying production processes and preventing an industry collapse.

Looking forward, Wright expressed aspirations to create a favorable environment for U.S. companies, both those that were once involved and new enterprises interested in entering the market. He acknowledged the immense potential of Venezuela’s resources, envisioning a future where it could become a “wealthy, prosperous, peaceful energy powerhouse.”