US President Donald Trump has announced that Venezuela 'will be turning over' up to 50 million barrels of oil - worth about $2.8bn (£2.1bn) - to the US, following a military operation to remove President Nicolás Maduro from power. The oil will be sold at its market price, Trump shared on social media, claiming he would control the revenue generated to ensure it benefits both Venezuelans and Americans.
This announcement follows Trump's assertion that the US oil industry would be 'up and running' in Venezuela within 18 months with expectations of significant foreign investment into the country's oil sector.
Analysts, however, suggest that restoring Venezuela's oil output could involve tens of billions in investments and potentially take a decade. China, a prominent buyer of Venezuelan oil in recent years, criticized Trump's declaration, viewing it as coercive, especially as reports surface regarding US efforts to secure exclusive rights to Venezuelan oil production. Trump has reportedly urged interim Venezuelan leaders, including Delcy Rodríguez, to sever economic ties with nations like China and align entirely with the US.
In a post on Truth Social, Trump wrote: 'I am pleased to announce that the Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil, to the United States of America.' He further mentioned the necessity of having a functional Venezuelan oil production for stabilizing the global oil prices.
As these developments unfold, major US oil companies, including Chevron, are reportedly set to discuss future engagements with the Trump administration. However, some analysts remain skeptical about the actual impact on the global oil supply and pricing, noting the potential hurdles regarding investment assurances and the long timeline for project outcomes.
Furthermore, Chinese officials have described the US's military action against Venezuela and demands as violations of international law and an infringement upon Venezuela's sovereignty.
While Trump claims this military intervention is justified due to Venezuela's alleged seizure of American oil assets, the long-standing complexities between US oil companies and Venezuela complicate the narrative. US companies have operated in Venezuela under various agreements for decades, and the claim of 'stolen' oil overlooks the nuances of nationalization and international laws governing resource ownership.
As the geopolitical landscape continues to shift with these new developments, the repercussions on US-Venezuela relations and global oil markets remain to be seen.
This announcement follows Trump's assertion that the US oil industry would be 'up and running' in Venezuela within 18 months with expectations of significant foreign investment into the country's oil sector.
Analysts, however, suggest that restoring Venezuela's oil output could involve tens of billions in investments and potentially take a decade. China, a prominent buyer of Venezuelan oil in recent years, criticized Trump's declaration, viewing it as coercive, especially as reports surface regarding US efforts to secure exclusive rights to Venezuelan oil production. Trump has reportedly urged interim Venezuelan leaders, including Delcy Rodríguez, to sever economic ties with nations like China and align entirely with the US.
In a post on Truth Social, Trump wrote: 'I am pleased to announce that the Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil, to the United States of America.' He further mentioned the necessity of having a functional Venezuelan oil production for stabilizing the global oil prices.
As these developments unfold, major US oil companies, including Chevron, are reportedly set to discuss future engagements with the Trump administration. However, some analysts remain skeptical about the actual impact on the global oil supply and pricing, noting the potential hurdles regarding investment assurances and the long timeline for project outcomes.
Furthermore, Chinese officials have described the US's military action against Venezuela and demands as violations of international law and an infringement upon Venezuela's sovereignty.
While Trump claims this military intervention is justified due to Venezuela's alleged seizure of American oil assets, the long-standing complexities between US oil companies and Venezuela complicate the narrative. US companies have operated in Venezuela under various agreements for decades, and the claim of 'stolen' oil overlooks the nuances of nationalization and international laws governing resource ownership.
As the geopolitical landscape continues to shift with these new developments, the repercussions on US-Venezuela relations and global oil markets remain to be seen.
