US to control Venezuela’s oil exports indefinitely as Trump moves to reshape energy strategy

Energy Secretary Chris Wright made the disclosure while speaking at a Goldman Sachs conference in Miami on Wednesday.

Wright said the US would begin by selling crude currently sitting in storage facilities, which have been filling up due to sanctions and shipping restrictions.

He added that Washington intends to manage Venezuelan oil exports on an ongoing basis.

“We’re going to market the crude coming out of Venezuela,” Wright said. “First this backed-up stored oil, and then indefinitely going forward we will sell the production.”

Billions in oil revenue to be held in US accounts

President Donald Trump said Venezuela would hand over up to 50 million barrels of oil for the US to sell, an amount valued at roughly $2.8 billion at current prices.

White House Press Secretary Karoline Leavitt confirmed that the US has already started marketing Venezuelan crude.

Revenue from these sales will be deposited in US Treasury accounts, a move officials say will shield the funds from Venezuela’s creditors.

Leavitt said the money would ultimately benefit both American and Venezuelan citizens.

Wright stressed that the US is not seizing the oil, saying the funds would be held in Venezuela’s name and returned for public benefit.

“We’re not stealing anyone’s oil,” he said in an interview with CNBC.

Sanctions rolled back as infrastructure push begins

As part of the new strategy, the US is selectively easing sanctions on Venezuela’s oil sector.

The administration is encouraging American energy companies to help rebuild the country’s dilapidated oil infrastructure and revive production, which has plunged after years of mismanagement and underinvestment.

Officials said discussions have already taken place with companies including Chevron, ConocoPhillips and Exxon Mobil.

Trump is scheduled to meet energy executives on Friday, with Secretary of State Marco Rubio also expected to attend.

“It’s just a meeting to discuss the immense opportunity that is before these oil companies,” Leavitt said.

US firms not immediately compensated

Wright said proceeds from oil sales will not initially be used to repay US companies whose assets were nationalised during Hugo Chávez’s presidency.

He acknowledged that compensation is necessary but described it as a long-term issue.

Venezuela’s state oil company PDVSA confirmed it is negotiating with Washington over a sales framework similar to its existing arrangement with Chevron, the only major US firm still operating in the country.

Tankers seized as US tightens grip

In a sign of its expanding control, US forces recently seized two sanctioned oil tankers, including one flying a Russian flag.

One vessel was intercepted south of Iceland, while the other was apprehended in the Caribbean.

The seizures underscore Washington’s efforts to oversee all Venezuelan crude exports as part of its broader energy strategy.

Production outlook and investment needs

Venezuela’s oil output has fallen below one million barrels per day, a sharp drop from past highs.

Wright estimated production could rise by several hundred thousand barrels daily in the short to medium term.

However, analysts say fully restoring the sector would require massive investment.

Francisco Monaldi of Rice University’s Baker Institute estimates rebuilding efforts could cost around $10 billion annually for the next decade.

Despite Venezuela’s vast oil reserves, companies remain cautious, seeking political stability and assurances that US policy will remain supportive beyond Trump’s presidency.

Oil markets react

Global oil prices dipped following the announcement, with futures falling about 1.5 percent to around $60 a barrel on Wednesday.

The administration’s move marks one of the most direct interventions by Washington in Venezuela’s oil industry, setting the stage for a potentially far-reaching transformation of the country’s most valuable resource.