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Energy Secretary Chris Wright said on Wednesday the Trump administration will oversee the sale of Venezuelan oil and control the proceeds under a new export plan designed to get crude flowing again and stabilize production.
“Yes, we are trying something radically different,” Wright told an audience at Goldman Sachs’ annual energy conference in Miami. “Instead of the oil being blockaded as it is right now, we are going to let the oil flow, selling it to U.S. refineries and markets around the world to improve oil supplies.”
The revelation follows President Donald Trump’s Tuesday evening announcement that Venezuela would transfer up to 50 million barrels of oil to the United States, worth about $2.8 billion at current market prices.
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Wright said the sales would be fully supervised by the U.S. government, with proceeds deposited into accounts controlled by Washington.
“From there, those funds can flow back to Venezuela and benefit the Venezuelan people,” he said, adding that the U.S. needs to maintain leverage over the Latin American country in order to “drive the changes that simply must happen in Venezuela.”
Venezuela’s oil industry was once the backbone of the nation’s wealth, anchoring an economy built around energy exports. The country holds more than 300 billion barrels of proven oil reserves, surpassing established energy giants including Saudi Arabia, Iran and Kuwait.
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Combined with its strategic Caribbean coastline, that vast energy wealth once positioned Venezuela as an economic powerhouse before years of mismanagement and sanctions hollowed out the economy.
Wright said the administration is now working directly with Caracas to restart exports, beginning with crude currently stranded in storage and offshore floating facilities.
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“The crude that’s backed up in storage and offshore floating storage, we’re going to get that crude moving again and sell it, just like we do in our businesses,” he said. “Then indefinitely, going forward, we will sell the production that comes out of Venezuela into the marketplace.”
He added that the U.S. would supply the diluent, a lighter oil needed to thin Venezuela’s heavy crude, to enable continued production.
“As we make progress with the government, we will enable the import of parts, equipment and services, to prevent the industry from collapsing, stabilize production and then, as quickly as possible, to start to see it grow again,” Wright said.
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“In the long run, we want to create the conditions for major American companies, that were there before, maybe they weren’t before, but want to go, will go in again.”
“The resources are immense,” he added. “This should be a wealthy, prosperous, peaceful energy powerhouse, that’s the plan.”
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