America is planning to keep Venezuela’s oil exports under its control for the foreseeable future. US Energy Secretary Chris Wright clarified Washington’s position on Venezuela’s most valuable asset, crude oil, during a recent public appearance.
Speaking at a Goldman Sachs conference in Miami, Wright said that oil currently stored in Venezuela’s facilities would first be brought back to the market and sold. This would be followed by the sale of oil produced in the country on an ongoing basis. He noted that much of the stored oil had remained unsold for a long time due to US sanctions, raising concerns over potential production shutdowns.
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Wright announced that, going forward, revenue from Venezuela’s oil sales would be kept in American accounts. He asserted that the United States was not appropriating Venezuela’s oil and said the funds would be held in accounts under Venezuela’s name and used for the welfare of its people.
As part of this plan, the Trump administration is encouraging US energy companies to help rebuild Venezuela’s oil infrastructure, which has significantly deteriorated. The US Energy Department has also announced that some sanctions on Venezuela’s oil sector are being relaxed.
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On Tuesday, President Donald Trump stated that Venezuela would hand over nearly 50 million barrels of oil to the United States, valued at approximately $2.8 billion at current market prices. White House Press Secretary Karoline Leavitt said that the marketing of Venezuelan oil had already begun and that the proceeds would be deposited in US Treasury accounts for the benefit of both the American and Venezuelan people.
Due to years of corruption and underinvestment, Venezuela’s oil production has fallen to less than 1 million barrels per day. According to Wright, output could be increased by several hundred thousand barrels per day in the short to medium term. However, experts estimate that a full recovery of the industry would require annual investments of nearly $10 billion over the next decade.
