In the Trump-Venezuela oil deal, the U.S. has secured a deal for up to 50 million barrels of Venezuela oil at market rates. It’s heavy crude, which is great news for Gulf Coast refineries since that’s the specific type they need to run efficiently.
Meanwhile, analysts estimate the total value of this oil at $2 to $2.8 billion, depending on global oil prices. Trump said that the money earned from selling this oil will be controlled by the U.S. government and used in ways that benefit both Americans and Venezuelans.
In addition, he instructed the U.S. Energy Secretary to move quickly by arranging oil storage ships and direct delivery to U.S. ports.
Why Is This Happening Now?
Notably, Trump announced the oil deal just after a major U.S. military operation in Venezuela on January 3rd, 2026, which resulted in U.S. forces capturing President Nicolás Maduro and his wife. Later, Trump said that the U.S. would temporarily manage Venezuela until a political transition takes place.
The United States no longer recognizes Maduro as the legitimate president. Washington claims that an interim Venezuelan administration is cooperating with them. However, Maduro still has loyal supporters in Venezuela. Several countries continue to recognize him as president. This situation has led to a dispute over political authority in Venezuela. As a result, the political uncertainty has raised serious questions about sovereignty and legality.
How Will the Oil Transfer Work?
According to Trump, the oil transfer will happen in various steps:
Extraction:
The oil will come from Venezuela’s largest reserves, mainly via the state-owned oil company PDVSA. U.S. sanctions previously restricted these barrels.
Transportation:
Chartered tankers will transport the oil directly to U.S. ports, mostly along the Gulf Coast.
Sales and Revenue:
While the oil is being sold at standard global rates, the revenue will go to the U.S. government rather than Venezuela.
Corporate Role:
American corporations like Chevron, which already operate there under special waivers, are expected to step in to handle the logistics and refining.
Why This Matters for the United States
Energy Independence:
The U.S. gets to rely less on foreign adversaries for energy and keeps more control over its own supply.
Domestic Politics:
Consequently, adding this much oil to the market should drive fuel prices down. That helps fight inflation and is a popular move with voters.
Global and Geopolitical Impact
Impact on China:
Traditionally, Venezuela has been a key oil supplier to China. Diverting 30 to 50 million barrels to the U.S. could limit China’s access to energy in Latin America.
International Reactions:
Russia and China have criticized the U.S. actions at the United Nations Security Council. They call it a violation of Venezuela’s sovereignty and the UN Charter.
Legal Concerns:
Critics say that taking control of another country’s oil breaks international law. Supporters believe that Maduro’s government has lost its legitimacy because of its authoritarian practices and sanctions.
Oil Markets:
Following the announcement, global oil prices fell as markets expected increased supply. U.S. refinery and energy stocks rose because of optimism.
Can Trump’s Venezuela Oil Deal Recover the Venezuelan Oil Industry?
Venezuela’s oil production has fallen apart because of years of bad management, sanctions, aging infrastructure, and a shortage of investment. Experts think that fixing the sector would require investing billions of dollars and taking several years. The U.S. Energy Secretary is reportedly in close contact with oil executives like Chevron to discuss rebuilding infrastructure.
Leandro Rizzuto, U.S. Ambassador to the Organization of American States, said:
“You cannot continue to have the largest oil reserves in the world under the control of adversaries of the Western Hemisphere, while the people of Venezuela have no electricity, a substandard quality of life, and profits that do not benefit the Venezuelan people. Instead, those profits are stolen by a handful of oligarchs around the world.”
Wall Street Reacts to the Announcement
In response to the announcement, host Amy Goodman reported on Democracy Now that the Dow Jones Industrial Average rose nearly 600 points, and Chevron shares jumped by 5% following the announcement.
Similarly, Wall Street Journal reporter David Uberti explained that Chevron is uniquely positioned in Venezuela:
“Chevron has been the sole player to continue navigating the political and economic environment in Venezuela, operating on a license agreement with the U.S. government to get around sanctions.”However, he warned that rebuilding Venezuela’s oil sector will take massive investment and time due to damaged infrastructure and unstable political conditions. Uberti also noted that oil prices around $58 per barrel may not encourage companies to invest heavily:
“$58 a barrel is not sending a signal to companies to spend billions of dollars to tap into unproven, decrepit reserves in a country that’s unstable.” He added that Trump has suggested the U.S. might reimburse or subsidize oil companies to encourage investment.
Investor Interest and Speculation
Former Chevron executive Ali Moshiri told the Financial Times:
“I’ve had a dozen calls over the past 24 hours from potential investors. Interest in Venezuela has gone from zero to 99%.” However, Uberti cautioned that many investors are speculative and long-term success remains uncertain.
Billionaire investor Paul Singer has invested in Citgo, a Venezuelan state-owned refining business. Its value has increased significantly, and it may be sold in the coming years.
Bigger Questions Ahead of Trump’s Venezuela Oil Agreement
Overall, while the oil deal could strengthen U.S. energy security and influence global markets, it raises major concerns about international law, political legitimacy, and corporate influence.
The future of Venezuela’s sovereignty, the reconstruction of Venezuela oil industry, and its long-term geopolitical implications remain uncertain.
For more informative articles like this, stay tuned to The World Times.
