The Trump administration is preparing a far-reaching plan to assert long-term control over Venezuela’s oil sector, a strategy aimed at reshaping global energy markets, lowering oil prices and sidelining Russia and China in the Western Hemisphere.
According to the Wall Street Journal (WSJ), US President Donald Trump and his advisers have discussed an initiative that would give the United States effective stewardship over large parts of Venezuela’s state-run oil industry, Petróleos de Venezuela SA (PdVSA), just days after US forces captured Venezuelan leader Nicolás Maduro.
Plan centers on PdVSA control
Experts familiar with the matter told the Journal that the plan under consideration would see the US acquiring, marketing and distributing most of PdVSA’s oil production, either directly or through existing and revived joint ventures with major energy companies.
If implemented, the strategy could place much of the Western Hemisphere’s oil reserves under US influence, when combined with production already controlled by American companies elsewhere. Administration officials view this as a way to block Russia and China from Venezuela’s energy sector while strengthening Washington’s leverage over global oil supply.
Trump has repeatedly told advisers that increased access to Venezuelan crude could help push oil prices down to about $50 a barrel – a level he has publicly described as his target.
Oil prices and political risks
US oil prices are already relatively low, with benchmark crude trading near $56 a barrel this week, complicating the president’s push. Many US producers have warned that sustained prices near $50 would make drilling unprofitable, potentially harming the domestic shale industry, a key political constituency for Trump.
Still, the White House argues the benefits outweigh the risks. Press Secretary Karoline Leavitt said the administration’s approach would benefit Americans and Venezuelans alike, claiming Venezuela’s oil had previously funded an “illegitimate narcoterrorism regime.”
PdVSA did not respond to requests for comment but confirmed in a social media statement that talks with the United States are underway regarding crude sales, describing them as commercial negotiations.
Sanctions rollback and oil sales
The WSJ reported that US officials have begun selectively rolling back oil sanctions to facilitate sales of previously blocked Venezuelan crude. Trump said this week that Venezuela would supply between 30 million and 50 million barrels of sanctioned oil to the United States.
Energy Secretary Chris Wright said the US would market Venezuelan oil “indefinitely,” starting with stored volumes and then ongoing production. Proceeds from those sales would initially flow into US-controlled accounts before being distributed to Venezuela’s interim authorities.
Trump is scheduled to meet with executives from Chevron, Exxon, and other energy firms later this week to discuss the plan.
Strategic implications beyond Venezuela
Analysts say the initiative reflects an expansion of Trump’s “drill, baby, drill” agenda beyond US borders, tying American security more explicitly to control of energy resources in the Western Hemisphere.
Lower global oil prices could also have geopolitical consequences beyond Venezuela. Oil revenues remain a critical pillar of Russia’s economy, and a sustained price drop would reduce funds available to the Kremlin – including for its war against Ukraine.
Kevin Book of ClearView Energy Partners told the Journal the administration sees energy dominance as central to US power in a fragmenting global order, contrasting it with the alliance-focused strategy of the previous administration.
Obstacles on the ground
Despite its ambitions, the plan faces significant hurdles. Venezuela’s oil industry has suffered years of neglect and underinvestment, and analysts estimate that boosting production would require tens of billions of dollars and years of work.
Chevron is currently the only major US oil company operating in Venezuela, and new entrants would need time to build infrastructure and expertise. Investors, meanwhile, remain wary of committing capital amid low prices and political uncertainty. Separately, Chevron has partnered with private equity firm Quantum Capital Group on a recent bid for the international assets of Russia’s sanctioned oil producer Lukoil.
The reported $22 billion offer targets Lukoil’s entire non-Russian portfolio, including oil and gas production, refining facilities, and more than 2,000 filling stations across Europe, Asia, and the Middle East.
Talks between US officials, Venezuelan interim authorities, and international traders – including Mercuria, Vitol and Trafigura – are ongoing, according to people familiar with the discussions. For now, the administration appears determined to press ahead, betting that control over Venezuelan oil can serve both domestic political goals and broader strategic aims.