Trump administration moves to control Venezuelan oil to lower prices

President Trump’s administration is pushing to exert control over Venezuela’s oil industry and use the country’s petroleum reserves to drive prices down toward $50 a barrel, offering U.S. drillers the chance to resume operations after the ouster of Nicolás Maduro, The New York Times reported.

Details have emerged slowly: The Wall Street Journal, citing unnamed sources, said the plan would give Washington at least some control over PDVSA, including acquiring and marketing most of its oil production, and the Energy Department has already begun that work. Mr. Trump told The Times he expected Washington would be “running Venezuela, and laying claim to the country’s petroleum output, for years,” saying “Only time will tell” and that “we’re going to be using oil, and we’re going to be taking oil.” Energy Secretary Chris Wright said the administration intended to oversee Venezuelan production “indefinitely,” and Secretary of State Marco Rubio insisted officials were “not just winging it.” Brent crude was trading at $59 a barrel that morning, and The Journal said $50 a barrel was a target.

Significant obstacles were noted: a White House spokeswoman said an agreement had been reached with Venezuela and PDVSA, but PDVSA said it was still negotiating; a partial U.S. blockade and the seizing of two oil tankers were cited as leverage. Several Western oil companies, including Exxon Mobil and ConocoPhillips, say Venezuela owes them billions, which could affect their willingness to invest.

Key Topics

Business, Pdvsa, Venezuela, Donald Trump, Energy Department, Exxon Mobil