Energy Secretary Chris Wright said Wednesday the United States plans to sell Venezuelan oil “indefinitely” and “create the conditions” for oil majors to operate in the South American country.
The comments at a Goldman Sachs conference in Florida mark deepening ties with Venezuela and a reversal from President Donald Trump’s first term, when sanctions were imposed on the country. On Tuesday, Trump said in a social media post that Venezuela’s interim authorities would be “turning over” between 30 million and 50 million barrels of sanctioned oil to the U.S.
According to Wright, the U.S. will first market crude in storage floating off Venezuela’s coast and then “sell the production that comes out of Venezuela into the marketplace.”
“Instead of the oil being blockaded, as it is right now, we’re going to … let the oil flow, sell that market to United States refineries … and around the world to bring better oil supplies,” Wright said.
Proceeds from the sales would be deposited into accounts controlled by the U.S. government so funds could flow back to Venezuela to benefit its people and help build out the industry, the secretary said.
“We need to have that leverage and that control of those oil sales to drive the changes that simply must happen in Venezuela,” he said, adding that the U.S. would supply chemicals to enable greater oil production.
“We’ll enable the importing of parts and equipment and services to kind of prevent the industry from collapsing, stabilize the production, and then as quickly as quickly as possible, start to see it growing again,” Wright said.
Chevron is the only U.S. major currently operating in Venezuela, which has the largest oil reserves in the world. In December, the administration imposed a partial blockade of the country, spurring storage of oil in ships off the coast.
It remains unclear whether other oil companies might try to operate in the country. Some industry leaders have raised concerns privately that it could be challenging to persuade shareholders to invest when opportunities exist in other countries with less turmoil.
“We’re closely watching developments involving Venezuela and any potential implications for global energy markets. Events like this underscore the importance of strong U.S. energy leadership. Globally, energy companies make investment decisions based on stability, the rule of law, market forces, and long-term operational considerations,” said American Petroleum Institute spokesperson Bethany Williams in an emailed statement.
Trump, Wright and Interior Secretary Doug Burgum are expected to meet with industry leaders at the White House on Friday to discuss plans for Venezuela. Wright also is slated to meet with company executives Wednesday in Miami, according to a DOE statement.
At the conference, Wright said he’s asking many companies “what are the necessary conditions it would take you to put billions of dollars to develop fields and build infrastructure?”
Modest crude prices, weak seasonal demand and a potential global liquids surplus “could complicate corporate investment decisions even without difficult-to-quantify above-ground risks. Even so, it may be too soon to conclude that President Trump’s exhortation to drill in Venezuela will have no takers,” ClearView Energy Partners said in a research note.
Press secretary Karoline Leavitt said at the White House on Wednesday that oil released from tankers off Venezuela’s coast would be arriving in the U.S. “very soon,” adding the U.S. has already begun marketing Venezuelan oil in the global marketplace.
Oil companies “are absolutely eager to invest. They’re eager about these opportunities,” she said. “There is a long term plan here.”
On Wednesday, the U.S. seized a Russian-flagged oil tanker headed to Europe from Venezuela after chasing it across the Atlantic.
Venezuelan officials did not immediately respond to request for comment.
Reporters Carlos Anchondo and Robin Bravender contributed.
