Trump Administration Moves to Control Venezuelan Crude Long Term
The Trump administration is moving toward a far more hands-on role in Venezuela’s oil trade, signaling that future crude sales will be overseen from Washington rather than Caracas.
Instead of allowing exports to resume under Venezuela’s direct control, U.S. officials are outlining a framework where oil is sold internationally while revenues are held in U.S.-based accounts.
Key Takeaways
- The US plans to oversee Venezuelan oil exports and route revenues through US-controlled accounts.
- Enforcement has intensified, with tanker seizures reinforcing Washington’s grip on crude flows.
- Reviving Venezuela’s oil industry will require massive investment and long-term policy stability.
The approach represents a major shift in how Washington intends to handle Venezuela’s most valuable asset, transforming oil exports into a managed financial pipeline rather than a sovereign revenue stream.
Clearing the Backlog Comes First
Chris Wright said the initial focus will be on large volumes of crude currently sitting in storage. These barrels have accumulated as sanctions and export restrictions slowed shipments, creating bottlenecks that threaten to force production shutdowns.
The plan is to move this oil quickly into global markets, easing pressure on Venezuela’s strained production system. Once storage levels normalize, the same structure would apply to new output, meaning future production would also be marketed under U.S. supervision.
Oil Revenues Shift to US Accounts
Under the proposed setup, proceeds from Venezuelan oil sales would be deposited into U.S.-controlled accounts, linked to the Treasury. The stated objective is to shield the funds from creditors while ensuring they are ultimately used for economic rebuilding rather than diverted through opaque channels.
Donald Trump has indicated that Venezuela could hand over tens of millions of barrels for the U.S. to sell, a move that would immediately test the scale and effectiveness of the new framework. White House officials argue the funds remain Venezuelan in name, even if access is tightly managed.
Enforcement Tightens Across Shipping Routes
Policy is being backed by force. U.S. authorities have recently seized sanctioned oil tankers in international waters, including vessels flying foreign flags. The seizures underscore Washington’s intent to control not just contracts and payments, but also the physical flow of Venezuelan crude.
The message to traders and intermediaries is clear: exports that fall outside the U.S.-approved system risk being intercepted.
US Oil Majors Courted for a Comeback
At the same time, the administration is pushing U.S. energy companies to help rebuild Venezuela’s decaying oil infrastructure. Select sanctions are being rolled back to make reentry possible, and discussions are underway with firms such as Chevron Corp., Exxon Mobil Corp., and ConocoPhillips.
Compensation claims stemming from past nationalizations, however, are being deferred. Wright acknowledged these obligations but framed them as a long-term issue, not a prerequisite for restarting production.
Venezuela’s state producer, Petroleos de Venezuela SA, confirmed it is negotiating with U.S. officials on a structure similar to its existing Chevron arrangement, which could become a template for future exports.
A Long Road Back for Production
Despite holding some of the world’s largest crude reserves, Venezuela currently produces well under one million barrels per day. U.S. officials believe output could rise modestly in the near term, but analysts warn that a full recovery would require billions in annual investment and years of political stability.
Whether energy companies are willing to commit under a U.S.-managed system remains uncertain. A planned meeting between Trump and industry leaders, potentially attended by Marco Rubio, may offer the first real signal of how viable this strategy is.
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