U.S. to Sell Venezuelan Crude Oil Indefinitely
Energy Secretary Chris Wright announced on Wednesday that the Trump administration plans to sell Venezuelan crude oil “indefinitely” while managing the funds generated from these sales. This move is part of a broader strategy aimed at gaining control over Venezuelan oil exports and revitalizing the country’s energy sector.
During a Goldman Sachs conference in Miami, Wright detailed the initial step: selling stored crude oil from Venezuelan facilities and tanker reserves before proceeding to market all Venezuelan oil. He emphasized that this sale would involve both readily available backup oil and future production.
“We’re going to put the crude oil that’s coming out of Venezuela on the market. First, there’s this backed-up crude, and then, indefinitely, we’re going to market Venezuelan crude oil,” Wright stated.
On Tuesday, President Trump mentioned that Venezuela would supply between 30 million to 50 million barrels of oil, which could be valued at around $1.5 billion to $2.5 billion based on current market prices. Trump took to Truth Social on Wednesday to confirm he would oversee the initiative and ensure that proceeds are appropriately directed.
Trump remarked, “This oil will be sold at market price and managed by me to benefit the people of both Venezuela and the United States!”
The revenue from these oil sales is set to be secured in U.S. Treasury-controlled accounts at recognized global banks, shielding it from Venezuela’s creditors while the current regime retains its influence during the transition period. White House press secretary Caroline Levitt noted that the funds “will be dispersed at the discretion of the United States for the benefit of the American people and the people of Venezuela.”
This initiative follows the U.S. military’s capture of Venezuela’s socialist leader, Nicolas Maduro. President Trump also announced plans for U.S. oil firms to help revamp the aging oil infrastructure in the country. A meeting with executives from Chevron, ConocoPhillips, and ExxonMobil at the White House is set for Friday to discuss possible investments in Venezuela.
The potential influx of Venezuelan crude is particularly appealing to Gulf Coast refineries, which are tailored to process heavy oil. After losing access to Venezuelan oil in the past few years, these refineries are actively seeking new oil sources. This specific type of crude is especially well-suited for U.S. consumption, thanks to the complex refining capabilities along the Gulf Coast.
Access to Venezuelan heavy crude could mean lower prices for U.S. consumers on products like jet fuel, diesel, and gasoline.
Additionally, the administration has selectively eased certain sanctions on Venezuela’s oil sector to facilitate the sale and shipment of crude oil that had previously been restricted. Wright indicated that the U.S. would import equipment and services to boost Venezuela’s oil production, hoping to entice major U.S. companies that had left the market during the nationalization under President Hugo Chávez.
Venezuela’s oil output has plummeted to under 1 million barrels per day due to years of mismanagement and lack of investment. Wright pointed out that restoring the industry could take about $10 billion annually over the next decade, though production might rise significantly in the short run, according to Francisco Monaldi from Rice University’s Baker Institute for Public Policy.
The proposed shipment of up to 50 million barrels represents roughly 15% of Venezuela’s yearly output and would require a fleet of 25 large oil tankers for transportation.
As the Trump administration tightens restrictions on Venezuelan oil exports, the U.S. military has been actively seizing sanctioned oil tankers, including two captured on Wednesday—one flagged from Russia and another intercepted in the Caribbean Sea.
On Wednesday, global crude oil futures dropped by 1.3%, hovering around $60 per barrel. Following Wright’s announcement, both Brent and WTI crude benchmarks fell by about 1%, signaling that traders are optimistic about the U.S. government’s ability to increase Venezuelan oil supply in the global market.
Trump has warned Venezuela’s acting president, Delcy Rodriguez, to adhere to U.S. demands. He stated, “If she doesn’t do the right thing, she’ll pay a very high price, probably more than President Maduro.”
Currently, Chevron is the only significant U.S. oil company operating in Venezuela, doing so under a special license. Exxon and ConocoPhillips had previously exited the market after Chávez nationalized their assets in the mid-2000s. Any oil firms considering a return will likely seek assurances about the stability of Venezuela’s government, as well as confidence in U.S. support for that government beyond President Trump’s presidency.
