U.S. Secretary of Energy Chris Wright detailed that Washington will oversee the sale and distribution of Venezuelan crude indefinitely, starting with previously sanctioned and storage-blocked inventories. Revenues derived from these sales will be deposited into accounts under U.S. government control, ensuring funds are allocated toward benefiting both Venezuelans and Americans. Wright highlighted the necessity of this oversight to foster political and economic reforms in Venezuela.
President Donald Trump announced that Venezuela would deliver between 30 and 50 million barrels of oil within this framework, with proceeds strictly managed in line with U.S. regulatory protocols. He further stated that Venezuela committed to purchasing only U.S.-manufactured goods—including agricultural products, medical supplies, and energy infrastructure equipment—with oil sale revenues. A forthcoming White House meeting with top executives from major U.S. oil companies aims to outline the commercial, logistical, and operational aspects of this renewed Venezuelan crude supply.
Despite optimism about Venezuela’s vast proven oil reserves—the largest worldwide, constituting about 17% of global reserves—energy experts and stakeholders acknowledge that revitalizing the country’s heavily deteriorated oil production will require multibillion-dollar investments and considerable time. Currently, Venezuela’s crude output is approximately 1% of global supply, yielding near 800,000 to 900,000 barrels per day. The U.S. anticipates an incremental production increase through phased capital and operational support, projecting potential growth of several hundred thousand barrels per day in the medium term.
This development unfolds amid a complex geopolitical landscape, after the detention of Nicolás Maduro and shifts in Venezuelan political leadership. The agreement reflects a pragmatic pivot towards stabilizing energy markets and re-engaging Venezuelan oil under stringent U.S. commercial and regulatory controls.
This article was curated and published as part of our South American energy market coverage.
