Washington says proceeds from crude sales will be held in US accounts as American firms are encouraged to rebuild Venezuela’s oil sector
The United States will take control of Venezuela’s oil exports indefinitely and market the crude on global markets, holding the proceeds in US Treasury accounts, Energy Secretary Chris Wright said, outlining Washington’s clearest strategy yet for managing the South American nation’s most valuable resource.
Speaking at a conference in Miami on Wednesday, Wright said the plan would begin with crude currently stored in Venezuela, which has been piling up due to US restrictions and risks forcing production shutdowns.
“We’re going to get that crude moving again and sell it,” Wright said, adding that the US would continue selling Venezuelan oil production going forward.
The move comes as the Trump administration pushes for American energy companies to help rebuild Venezuela’s decaying oil infrastructure and revive output that has suffered after years of underinvestment, corruption and sanctions.
President Donald Trump said earlier this week that Venezuela would relinquish as much as 50 million barrels of oil for the US to sell, worth around $2.8 billion at current prices. The White House confirmed that Washington has already begun marketing Venezuelan crude.
According to officials, revenue from the oil sales will be placed in US Treasury accounts, shielding the funds from Venezuela’s creditors. The money will be used for the benefit of both the American and Venezuelan people.
“We’re not stealing anyone’s oil,” Wright said in a separate interview, stressing that the funds would remain in Venezuela’s name and eventually be brought back for public benefit.
Sanctions eased, compensation put on hold
As part of the strategy, the US is selectively rolling back sanctions on Venezuela’s oil sector. However, Wright said proceeds from early oil sales would not be used to compensate US companies such as Exxon Mobil and ConocoPhillips, whose assets were nationalised under former president Hugo Chávez. Compensation, he said, remains a long-term issue.
Venezuela’s state oil company confirmed it is negotiating with Washington over crude sales under a framework similar to its existing arrangement with Chevron, the only major US oil firm still operating in the country.
Meanwhile, US forces have seized two additional sanctioned oil tankers as the administration tightens control over Venezuelan crude exports. One vessel was intercepted in the Atlantic south of Iceland, while the other was seized in the Caribbean.
US firms urged to revive oil production
The Trump administration is urging companies including Chevron, ConocoPhillips and Exxon to help restore Venezuela’s oil infrastructure after the removal of former president Nicolás Maduro. Officials said discussions have already taken place, and Trump is expected to meet energy executives later this week. Secretary of State Marco Rubio may also attend.
Venezuela’s oil output has fallen to less than one million barrels per day. Wright estimated production could rise by several hundred thousand barrels per day in the short to medium term, though restoring the industry fully would require massive investment over many years.
Global oil prices slipped about 1.5 per cent on Wednesday, trading near $60 a barrel.