President Donald Trump announced on Saturday that the United States would take control of Venezuela's immense oil reserves. He outlined plans to engage major American oil companies to invest billions of dollars in refurbishing Venezuela's damaged oil industry.
Venezuela possesses a massive 303 billion barrels of crude, representing approximately one-fifth of the world's global reserves, according to the US Energy Information Administration (EIA). Trump indicated that the US would operate the Venezuelan government temporarily, with a long-term commitment to overseeing the country's oil assets. He emphasized that US forces had already seized sanctions-hit tankers and that the administration would manage all future sales of Venezuelan crude production globally.
Trump further claimed that Venezuela would be turning over between 30 and 50 million barrels of sanctioned oil to the US. This oil, valued at about $2.8 billion, would be sold at market price, with the proceeds controlled by the US President to benefit both the people of Venezuela and the United States. He projected that the US oil industry could be "up and running" in Venezuela within 18 months, despite analysts suggesting that restoring Venezuela's former output could require tens of billions of dollars and potentially a decade.
Analysts, including those who spoke to the BBC, expressed skepticism about the immediate impact of Trump's plans on global oil supply and prices. They noted that firms would seek stability before investing, and even then, projects would take years to yield results. Additionally, Venezuelan oil is known to be heavy and more challenging to refine, which could increase costs for US firms involved in its production.
Chris Wright, the US energy secretary, confirmed that the US intended to market the crude produced from Venezuela. Trump's administration views Venezuela's vast reserves as a significant opportunity for US energy prospects, despite the considerable investment and time needed to revitalize the industry.
