Trumps Venezuela Oil Plan
As of January 15, 2026, the control of Venezuelan oil has shifted from a state-centric model under Nicolás Maduro to a state of “external management” led by the United States.
Following the U.S. military capture of Maduro on January 3, 2026, the Trump administration has asserted de facto control over the country’s petroleum resources Having effective control of Venezuela’s oil exports could expand the United States’ ability to project power around the world without worrying as much about the economic and political consequences of oil price shocks.
It could reduce the influence of Middle Eastern oil producers and leave big consumers like China more dependent on the United States. For a White House pursuing “energy dominance,” President Trump’s play for Venezuela’s oil holds considerable promise.
The Trump administration soon will allow Venezuela to sell oil now subject to US sanctions, with the revenue initially dedicated to basic government services such as policing and health care and subject to Washington’s oversight, Secretary of State Marco Rubio said Wednesday.
The United States will retain control in the short term to ensure the oil revenue is used to stabilize Venezuela, Rubio said at a Senate Foreign Relations Committee hearing. He noted that the interim leaders of the South American country will submit “a budget” every month of what they need funded.
“The funds from that (oil sales) will be deposited into an account that we will have oversight over,” Rubio said, adding that the US Treasury would control the process. Venezuela, he said, “will spend that money for the benefit of the Venezuelan people.” Rubio offered new insight into how the US is planning to handle the sale of tens of millions of barrels of oil from Venezuela, which has the largest proven reserves of crude in the world, and oversee where the money flows.
After the US raid that captured then-President Nicolas Maduro this month, the US is working to influence the next steps in the South American country through its vast oil resources. The news comes as the administration has repeatedly said it wants more U.S. firms to drill in Venezuela, a push that has been met with tepid interest from industry. Currently, Chevron is the only U.S. company that is drilling in Venezuela and has a license that allows it to do so without facing U.S. sanctions.
Last week, the Trump administration separately issued a license enabling U.S. firms to trade oil that’s produced in Venezuela.Venezuela has the world’s largest proven oil reserves, enough for 303 billion barrels, as of 2023.
Venezuela has assured Beijing that its oil pricing will not be dictated by the U.S. and that Chinese investment in the South American country remains secure, according to state media. Speaking at a press briefing Tuesday, Remigio Ceballos, Venezuelan ambassador to China, dismissed reports that Washington would influence the price China pays for Venezuelan crude, saying Caracas would not abide by U.S. arrangements.
The Wall Street Journal reported last month that the U.S. President Donald Trump was considering exerting control over Venezuela’s state-run oil company Petróleos de Venezuela SA, or PDVSA, including lowering prices to $50 per barrel. “Regarding oil pricing, Venezuela will not heed the arrangements of the United States or other countries. We have the right to make independent decisions, and oil prices will be determined based on international market prices,” Ceballos said.
The comments came about a month after the U.S. captured Venezuelan President Nicolás Maduro and his wife, Cilia Flores, in a surprise military operation, and moved to assert influence over its oil sector through sanctions and negotiated oil sales.
China, which has absorbed much of Venezuela’s crude exports at steep discounts due to U.S. sanctions, has condemned the U.S. military attack on Venezuela and called for the release of Maduro. Ceballos described the capture of Maduro as a “warning to the entire world” but sought to play down the impact on Venezuela’s ties with China. “China and Venezuela are trusted partners,” he said, adding that the relationship was built on mutual trust and could not be swayed by any third country. The ambassador also sought to assure that Chinese investment in Venezuela will be secure.
“Chinese enterprises operating in Venezuela and investments from other nations have continued to progress as usual. Not only for the petroleum sector, but all areas of cooperation will not be affected.”
