WASHINGTON / MIAMI — The United States must indefinitely control Venezuela’s oil sales and revenue to stabilise the country’s economy, rebuild its oil sector and ensure it aligns with American interests, senior US officials said on Wednesday, underscoring crude oil’s central role in President Donald Trump’s Venezuela strategy.
The comments follow Saturday’s US military operation in Caracas that resulted in the capture of Venezuelan leader Nicolas Maduro, a dramatic escalation in Washington’s long-running confrontation with the OPEC member nation.
“We need to have that leverage and that control of those oil sales to drive the changes that simply must happen in Venezuela,” US Energy Secretary Chris Wright said at the Goldman Sachs Energy, CleanTech & Utilities Conference in Miami.
Wright said oil revenues would be used to stabilise Venezuela’s battered economy and could eventually repay US oil majors Exxon Mobil and ConocoPhillips for losses incurred when their assets were nationalised under former President Hugo Chavez nearly two decades ago.
US Vice President JD Vance said control of Venezuela’s oil amounted to control of the country itself.
“We control the energy resources, and we tell the regime: ‘You’re allowed to sell the oil so long as you serve America’s national interest,’” Vance said in an interview on Fox News’ Jesse Watters Primetime.
“That’s how we exert incredible pressure on that country without wasting a single American life.”
Democratic backlash, industry concern
Democratic lawmakers sharply criticised the policy. Senator Chris Murphy of Connecticut compared it to seizing Venezuela’s oil “at gunpoint,” while energy analysts warned that political instability could intensify as the country balances domestic backlash with pressure from Washington.
Venezuela holds the world’s largest proven oil reserves but produces only about 1% of global supply, after decades of underinvestment and mismanagement eroded output.
Stored oil to be sold first
Wright said the US would initially market stored Venezuelan oil before selling future production indefinitely, with proceeds placed into accounts controlled by the US government.
The US Department of Energy said sales are already underway, supported by leading commodity traders and international banks. Wright added that he is in talks with US oil companies to determine what conditions would allow them to return to Venezuela and help boost production over the long term.
“The resources are immense. This should be a wealthy, prosperous, peaceful energy powerhouse,” Wright said.
Initial export deal announced
On Tuesday, Washington announced an agreement allowing the export of up to $2 billion worth of Venezuelan crude to the United States, signalling cooperation from the interim government led by President Delcy Rodriguez.
Trump said on Wednesday that Venezuela had agreed to use proceeds from oil sales to purchase American-made goods.
“A wise choice, and a very good thing for the people of Venezuela, and the United States,” Trump wrote on Truth Social.
Venezuela’s state-run oil firm PDVSA confirmed progress in negotiations. Board member Wills Rangel said US buyers would need to pay fair market prices for crude cargoes.
Shares of US refiners Marathon Petroleum, Phillips 66 and Valero Energy rose between 2.5% and 5% following the announcement.
White House talks with oil majors
Trump is scheduled to meet the heads of major US oil companies at the White House on Friday to discuss ways to increase Venezuelan oil production. Representatives from Exxon Mobil, ConocoPhillips and Chevron are expected to attend, according to sources familiar with the plans.
Chevron, the only US oil major still operating in Venezuela, said Vice Chairman Mark Nelson would represent the company. All three companies declined to comment.
Wright told CNBC he spoke with the chief executives of Exxon Mobil, ConocoPhillips and Chevron immediately after Maduro’s capture and expects them to assist in rehabilitating Venezuela’s oil sector.
Venezuela produced as much as 3.5 million barrels per day in the 1970s, but output averaged about 1.1 million barrels per day last year. Wright said production could rise quickly with new equipment and technology, though a full recovery would take years.