The United States has announced it will take long-term control of Venezuelan oil sales.
US Energy Secretary Chris Wright said Washington will oversee the sale of Venezuelan crude “indefinitely,” following President Donald Trump’s declaration that Venezuela’s interim leadership agreed to US-managed marketing of up to 50 million barrels of oil.
Speaking on Wednesday, January 7, at a Goldman Sachs energy event in Miami, Wright confirmed that the plan would begin immediately.
Moreover, he said the arrangement would not be temporary.
“We’re going to market the crude coming out of Venezuela, first this backed-up stored oil, and then indefinitely, going forward, we will sell the production that comes out of Venezuela into the marketplace,” he said.
The statement comes just days after the US-led removal of Nicolás Maduro, which left his deputy and close allies overseeing the Venezuelan government.
However, the sudden shift has raised questions across energy and political circles.
Wright explained that US control would allow sanctions on Venezuela’s oil sector to be adjusted.
Therefore, exports could resume under strict oversight. In addition, he said the United States would supply the diluting agents needed to process Venezuela’s extra-heavy crude.
According to him, cooperation with the interim government would help avoid a collapse of the oil industry. Furthermore, it would allow the import of parts, equipment, and services needed to stabilize production.
Restoring output to past levels will not be easy, Wright admitted. He said returning production to over three million barrels per day would require huge funding.
“It’s going to require tens of billions of dollars and time, but it’s achievable,” he noted.
Meanwhile, Wright added that production could rise by several hundred thousand barrels per day in the short term. This, he said, could be done with modest investment and repairs to existing facilities.
Venezuela claims it holds about one-fifth of global oil reserves.
President Trump said on Tuesday that between 30 and 50 million barrels would be shipped to US ports. He estimated the proceeds at over $2 billion.
Meanwhile, Maduro and his wife were captured in Caracas on Saturday. They were flown to New York to face drug-related charges.
It remains unclear if interim president Delcy Rodriguez formally approved the oil deal. Moreover, the legal basis for US control has not been fully explained.
“Think about where Venezuela was a week ago,” Wright said. “It’s a little different today, but everything else is largely the same. This is going to require cooperation and pressure between the United States and Venezuela.”
