The United States government has announced it will indefinitely maintain control over sales of previously sanctioned Venezuelan oil, marking a significant strategic pivot in its foreign policy approach. This decision comes as the administration prepares to reintroduce Venezuelan crude into global markets under a novel revenue control mechanism.
White House officials confirmed the policy implementation, revealing that initial sales will involve 30 to 50 million barrels of oil. The generated revenue—estimated by analysts at approximately $2.8 billion—will be administered exclusively by U.S. authorities to preserve diplomatic leverage over the Venezuelan government. Energy Secretary Chris Wright articulated the strategy at an energy conference in Miami, stating, “We’re going to let the oil flow,” while emphasizing that financial control remains essential to “drive the changes that simply must happen in Venezuela.”
The operational framework, initiated through coordination with major banking institutions and commodity trading firms, follows President Donald Trump’s social media announcement regarding Venezuela’s transfer of up to 50 million barrels to U.S. control. The administration asserts that proceeds will be deposited into U.S.-managed accounts, with President Trump personally overseeing distribution to benefit both Venezuelan citizens and American interests.
Secretary of State Marco Rubio clarified the objective: ensuring funds reach “the Venezuelan people—not corruption, not the regime.” This approach aims to stabilize Venezuela’s crippled economy while maintaining pressure on Nicolás Maduro’s government.
Despite possessing the world’s largest proven oil reserves, Venezuela’s production has collapsed to approximately 1 million barrels daily (less than 1% of global output) due to chronic disinvestment, mismanagement, and sustained sanctions. Recent production had primarily supplied China until U.S. naval blockades disrupted these shipments.
China has condemned the U.S. seizure of Venezuelan assets, with Beijing’s foreign minister criticizing American control over Venezuela’s oil resources. Meanwhile, industry analysts note that U.S. refiners—particularly Chevron—equipped to process Venezuela’s heavy crude stand to benefit immediately. This development may pressure Canadian and Mexican producers who currently dominate heavy crude supply to U.S. refineries.
Oil markets have already responded to the prospect of increased Venezuelan access, with prices declining further amid already subdued demand expectations. However, analysts caution that meaningful production recovery requires years of investment and billions of dollars—investment that may prove challenging given more attractive opportunities in stable regions like the U.S. and Guyana.