Trump Announces Venezuela’s Plan to Transfer 50 Million Barrels of Oil to US

U.S. President Donald Trump announced plans for Venezuela to transfer between 30 million and 50 million barrels of oil to the United States. This development follows the removal of President Nicolás Maduro through a military operation. The oil, identified as high-quality and sanctioned, will be sold at market prices.

Details of the Oil Transfer

Trump stated that the funds from this oil transfer would be controlled by his administration. He emphasized that the money would benefit both Venezuela and the United States. His announcement coincided with the swearing in of Delcy Rodríguez as interim president of Venezuela.

Production and Economic Impact

Trump expressed optimism about the U.S. oil industry’s revitalization in Venezuela within 18 months. He anticipated significant investments arriving in the country. However, analysts caution that restoring Venezuela’s oil production, once the world’s largest, could take much longer and require substantial investments.

• Venezuela’s oil reserves are estimated at 303 billion barrels.
• The country has experienced a decline in oil production since the early 2000s.
• Currently, Chevron is the only U.S. company operating in Venezuela.

Analyst and Industry Reactions

Experts remain skeptical about the immediate effect of Trump’s plans on global oil supply and prices. Many believe that investors will want assurances of political stability before committing to new projects, which could take years to yield results.

Chevron’s spokesman emphasized the company’s focus on employee safety and regulatory compliance. ConocoPhillips, which has exited the Venezuelan market, is monitoring the situation but remains cautious about potential re-entry into the market.

Exxon did not provide immediate comments on their involvement or potential future activities in Venezuela.

Complex History of U.S.-Venezuela Oil Relations

Trump and other officials claim that Venezuela “stole” American oil properties. This assertion stems from a complex history in which Venezuela nationalized its oil industry in 1976 and exerted further control in 2007. A World Bank tribunal awarded $8.7 billion to ConocoPhillips in 2019 due to nationalization actions, which Venezuela has yet to pay.

While some narratives simplify the relationship, experts note that the oil rights have always remained with Venezuela, complicating the claims of theft. The situation highlights the intricate dynamics of international oil politics and the challenges in restoring production levels.