US says it will takes charge of Venezuelan oil to drive economic and political change

The US has announced that it will take indefinite control of Venezuela’s oil sales and revenues.

They plan to do this as part of a bigger plan to stabilize Venezuela’s economy, which is in crisis. According to officials, the aim is to rebuild its petroleum industry and ensure alignment with the U.S. interests.

The energy secretary of U.S, Chris Wright, said in a conference that they needed “leverage and control” over oil sales so that the revenue generated could be used to stabilize the economy and then compensate the big companies Exxon Mobil and Conoco Phillips for losses incurred when their assets were nationalized under Hugo Chavez.

JD Vance, the vice president of US claimed that controlling oil meant controlling Venezuela. “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; you‘re not allowed to sell it if you can‘t serve America‘s national interest,” he told Fox News. “And that’s how we exert incredible pressure on that country without wasting a single American life, without endangering a single American citizen,” he said.

Senator Chris Murphy, however, said that this equals to taking Venezuela’s oil by force. Furhthermore, analysts warned it could fuel political instability.

Due to years on under-investment, Venezuela, even with the world’s largest proven oil reserves, produces only about one per cent of global oil supply.

Chris Wright stated that US plans to first sell the stored Venezuelan oil, then market future production indefinitely, with revenue held in US-controlled accounts. “The resources are immense. This should be a wealthy, prosperous, peaceful energy powerhouse,” he said.

A deal was also announced by them for Venezuela to initially export up to $2 billion worth of crude oil, as Venezuelan interim president Delcy Rodriguez’s government responds to Trump’s demands.

Trump said Venezuela agreed to use oil proceeds to buy American goods. “A wise choice, and a very good thing for the people of Venezuela, and the United States,” he wrote.

State oil firm of Venezuela, PDVSA confirmed negotiations, while US refiners’ shares rose on expectations of increased supply.

Trump is set to meet oil executives from Chevron, Exxon Mobil and ConocoPhillips at the White House to discuss how to increase oil production. Venezuela’s oil output has fell sharply over the years. Wright said production could rise quickly with new equipment, though a full recovery would take years.