U.S.: ‘We Will Manage Sales, Not Own Venezuelan Oil...Production Will Increase’

According to Financial News, the administration of U.S. President Donald Trump has begun full-scale intervention in Venezuela’s oil industry, moving to expand production and tighten control over distribution. The move is seen as an attempt to lower global oil prices through Venezuelan crude while cutting off the flow of oil and money to Cuba, thereby increasing pressure on a string of leftist governments in Latin America.
Christopher Allen Wright, U.S. Secretary of Energy, said in an interview with CBS Broadcasting Inc. (CBS) on the 11th (local time), “U.S. involvement in Venezuela’s oil industry will expand,” adding, “You will see more U.S. companies entering the market and an increase in oil production.” However, when asked whether the U.S. government would come to own Petróleos de Venezuela, S.A. (PDVSA), Venezuela’s state-owned oil company, he replied, “No,” and drew a line by saying, “What we are doing now is managing their crude oil sales.”
In the U.S., there has been speculation that, following the ouster of President Nicolás Maduro, Washington would tighten its control over PDVSA and secure Venezuelan crude for direct sale and distribution by the U.S. government. In practice, the U.S. government has agreed to receive between 30 million and 50 million barrels of Venezuelan crude, and President Trump the previous day signed an executive order stipulating that proceeds from the sale of Venezuelan oil, once deposited into an account at the U.S. Department of the Treasury, will be protected from seizure or legal action.
Wright also made clear that Washington intends to use increased Venezuelan oil production to drive down oil prices. “President Trump is not a helper of the oil and gas industry,” he said. “He stands on the side of consumers who benefit from lower oil prices.” Because falling oil prices generally erode the profitability of oil companies, his remarks indicate that the production-expansion policy is focused not on protecting the industry but on stabilizing prices.
He further rejected renewed controversy over the potential sale of the stake in CITGO Petroleum Corporation, a U.S. refiner owned by Venezuela. Addressing claims that the sale of CITGO would amount to special treatment for Elliott Management, a hedge fund owned by Trump supporter Paul Elliott Singer, Wright said, “There is absolutely no favoritism.” He added, “It was an auction open to all U.S. companies,” and went on, “We want U.S. refining assets to remain in American hands and to increase throughput so that gasoline prices come down.”
On the same day, President Trump declared that he would completely cut off the flow of oil and money moving from Venezuela to Cuba. Writing on Truth Social, he said, “Cuba has for years survived by relying on the massive amounts of oil and money coming from Venezuela,” adding, “In return, Cuba has provided ‘security services’ to the last two dictators of Venezuela.” He went on to claim, “Most of those Cubans were killed in last week’s U.S. attack.”
President Trump stated, “Venezuela no longer needs protection from thugs and extortionists,” emphasizing, “It now has the United States, with the most powerful military in the world, as its protector.” He continued, “There will be no more oil or money going from Venezuela to Cuba. Zero,” and warned, “I strongly urge you to reach an agreement before it is too late.” Since the arrest of President Nicolás Maduro, he has repeatedly raised the possibility of regime collapse in Cuba, saying that the situation there is “very bad” and that the regime will “simply fall apart.”
#Venezuela #OilDiplomacy #PDVSA #Cuba #Trump
km@fnnews.com Kim Kyung-min Reporter