U.S. Strategy for Venezuelan Oil
Chris Wright, a senior official in the Trump administration, announced plans for the United States to oversee the sale of Venezuelan oil. Speaking at a Goldman Sachs energy event in Miami, he stated, 'We will market crude oil from Venezuela, starting with what is currently in storage, and eventually, we will sell future production on the market.'
Wright expressed optimism about the potential for increased production, noting, 'The resources are immense.' He anticipates that, under favorable conditions, Venezuela could yield several hundred thousand additional barrels per day in the short to medium term.
Venezuela's Oil Reserves and Production Challenges
According to the Organization of the Petroleum Exporting Countries (OPEC), Venezuela holds the largest proven oil reserves in the world, exceeding 303 billion barrels, surpassing both Saudi Arabia and Iran. However, the country's production has plummeted to around one million barrels per day due to decades of underinvestment in infrastructure and the impact of U.S. sanctions.
Impact of U.S. Sanctions
During Donald Trump's first term, the U.S. implemented an oil embargo aimed at crippling Venezuela's economy, which heavily relies on oil exports. Upon his return to the White House in 2025, Trump revoked most licenses that allowed multinational oil and gas companies to operate in Venezuela, with the notable exception of American company Chevron.
Wright assured that the U.S. aims to create conditions for major American companies, whether they previously operated in Venezuela or are looking to enter the market, to establish a presence there. However, he cautioned that restoring production to historical levels would require 'tens of billions of dollars and a significant amount of time.'
Projected Oil Deliveries and Financial Oversight
On the previous day, Trump claimed that Venezuela would deliver 'between 30 and 50 million barrels of sanctioned oil' to the U.S., which he stated would be sold at market prices, theoretically valued at over two billion dollars based on current rates. He emphasized, 'The money will be controlled by me, the President of the United States, to ensure it benefits the people of Venezuela and the United States.'
Global Enforcement of the Oil Blockade
In a related development, the U.S. Secretary of Defense confirmed that the American blockade on Venezuelan oil remains in effect globally. Two additional oil tankers have been seized in the Caribbean and the North Atlantic, underscoring the ongoing enforcement of sanctions.