In a bold move following the dramatic U.S.-led ouster and capture of Venezuelan President Nicolás Maduro, President Donald Trump announced on January 6 that Venezuela’s interim authorities have agreed to turn over 30 to 50 million barrels of high-quality, previously sanctioned crude oil directly to the United States.
“This is a tremendous deal for America and for the people of Venezuela,” Trump posted on Truth Social. “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. It will be sold at Market Price, and that money will be controlled by me, as President, to ensure it benefits both nations.”
The oil — valued at approximately $1.8 to $3 billion based on current Brent crude prices hovering around $60-62 per barrel — will be transported via storage ships to U.S. unloading docks. Trump has directed Energy Secretary Chris Wright to execute the plan immediately.
Background: Maduro’s Capture and the Path to the Deal
The announcement comes just days after a U.S. military operation on January 3 captured Maduro and his wife, Cilia Flores, in Caracas. Maduro, facing U.S. charges of narco-terrorism, drug trafficking, and corruption, pleaded not guilty in a New York court on January 5. The operation, which resulted in dozens of casualties, led to the swift installation of Vice President Delcy Rodríguez as interim leader.
Trump has framed the intervention as essential to combating drug flows and restoring stability, while emphasizing Venezuela’s vast oil wealth — the world’s largest proven reserves at over 303 billion barrels. “We built the Venezuelan oil industry with American talent and investment,” Trump has stated repeatedly. “It was stolen from us through nationalization and mismanagement. Now, we’re taking it back fairly.”
Historically, U.S. companies like ExxonMobil and ConocoPhillips invested heavily in Venezuela before Hugo Chávez’s nationalizations in the 2000s forced them out, leading to multibillion-dollar arbitration awards that remain largely unpaid.
What This Means for Global Oil Markets
Venezuela currently produces around 1 million barrels per day, down from peaks of 3.5 million due to sanctions, corruption, and underinvestment. The 30-50 million barrels represent stockpiled sanctioned crude — roughly 1-2 months of current production.
- Short-term impact: Minimal disruption expected, as global markets are oversupplied. Brent crude dipped slightly to around $60.50 per barrel following the news, with analysts noting ample supply from OPEC+ and U.S. record production.
- Long-term potential: Trump vows U.S. firms will invest billions to rebuild infrastructure, potentially boosting output to 2.5-4 million barrels per day over a decade. Experts estimate $100+ billion needed, with recovery taking 5-10 years.
- Market reaction: Oil prices remain pressured by forecasts of surplus, with Brent expected to average $55-60 in 2026.
| Key Venezuela Oil Facts | Details |
|---|---|
| Proven Reserves | 303 billion barrels (world’s largest) |
| Current Production | ~1 million bpd |
| Peak Historical Production | 3.5 million bpd (1970s-2000s) |
| Oil Type | Mostly heavy sour crude (Orinoco Belt) |
| Estimated Deal Value (30-50M barrels @ $60/bbl) | $1.8B – $3B |
| Potential Future Output (with investment) | 2.5-4 million bpd in 10 years |
Legal and International Implications
The deal raises questions under international law, as the U.S. has no direct ownership claim to Venezuelan resources despite past expropriations. Sanctions imposed since 2019 blocked PDVSA transactions, but the regime change opens doors for licensed U.S. involvement.
Major oil companies — including Chevron (already operating under limited licenses), ExxonMobil, and ConocoPhillips — have not commented publicly but are reportedly in talks with the administration.
Global reactions are mixed:
- Allies like Colombia and some EU nations criticize the military action.
- China and Russia condemn it as interventionism.
- Domestic U.S. support is strong among Republicans, viewing it as reclaiming influence and countering drug threats.
Trump has pledged the proceeds will “nurse Venezuela back to health” while benefiting America, with U.S. oversight ensuring transparency. “We’re going to make Venezuela great — and rich — again,” he said.
This unprecedented transfer marks a pivotal shift in U.S.-Venezuela relations, potentially reshaping energy flows in the Western Hemisphere for decades.
Sources: Truth Social, Reuters, Bloomberg, EIA, OPEC data, and major news outlets.
