United States President Donald Trump has stated that Venezuela will hand over between 30 and 50 million barrels of oil currently stuck in storage because of long-standing US sanctions. This oil, blocked from export under Washington’s embargo, would be sold at market prices, according to Trump.
He said the proceeds from these sales would be controlled by his administration and directed toward benefiting both the Venezuelan people and the United States. Trump also confirmed that he has instructed his energy secretary, Chris Wright, to move forward with the plan immediately.
Oil to Be Shipped Directly to the United States
In a statement posted on his Truth Social platform on Tuesday, Trump explained that the oil would be transported by storage tankers and delivered straight to US unloading ports. He framed the move as part of a broader effort to reassert US influence over Venezuela’s oil sector.
The announcement follows Trump’s repeated claims that he intends to “take back” Venezuela’s oil resources and revive the country’s struggling energy industry. These remarks come amid heightened tensions following his administration’s controversial actions involving Venezuelan President Nicolas Maduro.
Investment Promises and Legal Disputes
Trump has argued that US oil companies are prepared to invest billions of dollars to rebuild Venezuela’s aging infrastructure and tap into its vast reserves. He has also claimed—without legal basis—that these resources were “stolen” from the United States.
Under international law, the US holds no ownership rights over Venezuelan oil. However, during the presidency of Hugo Chavez, several American energy assets were seized as part of a sweeping nationalization campaign.
Reaction From Major US Oil Companies
The three largest US oil firms—Chevron, Exxon Mobil, and ConocoPhillips—have not publicly commented on Trump’s proposal. However, US media reports indicate that company representatives are scheduled to meet Trump on Friday to discuss the situation in Venezuela.
Currently, Chevron is the only major US company still operating in Venezuela, producing roughly 150,000 barrels per day.
Global Market Impact Remains Limited
From a global perspective, analysts say that even 50 million barrels would add only a modest supply to the oil market. Worldwide consumption exceeds 100 million barrels per day, while US production alone stands at about 14 million barrels per day.
Mark Finley, an energy specialist at the Baker Institute in Texas, noted that the real impact depends on the time frame over which the oil is released.
“If it’s over a month, that’s nearly all of Venezuela’s output,” Finley explained. “Spread over a year, it becomes far less significant.”
Questions Over Revenue Control and Feasibility
Trump’s assertion that his administration would manage the oil revenues has raised further uncertainty. Scott Montgomery, a global energy expert at the University of Washington, said there is no clear precedent in the US for such an arrangement.
He added that rebuilding Venezuela’s oil sector would be an enormous challenge. Restoring production anywhere near its 1990s peak of over three million barrels per day would require years of work and vast financial resources.
According to estimates from Rystad Energy, Venezuela would need about $110 billion in investment just to raise output to around two million barrels per day. Extensive scientific and engineering assessments would also be needed, as oil reservoirs have deteriorated over time.
A Sector in Long-Term Decline
Many analysts remain skeptical that US companies will commit such large sums, especially given past experiences with asset seizures and the current global oil surplus. ExxonMobil and ConocoPhillips were previously awarded $1.6 billion and $8.7 billion in arbitration rulings after nationalizations in 2007, though Venezuela never paid those awards.
Once a leading global oil producer, Venezuela now accounts for less than 1 percent of worldwide supply, despite holding the largest known oil reserves. Years of sanctions, underinvestment, corruption, and mismanagement under both Chavez and Maduro have left the industry severely weakened.
