On Tuesday evening (January 6), US President Trump (Trump) announced on his social media platform “Truth Social” that the interim government of Venezuela will transfer 30 to 50 million barrels of high-quality, sanctioned oil to the United States.
“I am pleased to announce that the interim authorities of Venezuela will transfer 30 to 50 million barrels of high-quality, sanctioned oil to the United States,” Trump wrote on his platform.
“The oil will be sold at market prices. As the President of the United States, I will oversee this fund to ensure that it benefits the people of Venezuela and the people of the United States,” he added.
“I have instructed Energy Secretary Chris Wright to execute this plan immediately. The oil will be shipped by oil tankers directly to the unloading docks in the United States,” Trump continued.
This announcement came after the US military captured Venezuela’s dictator, Nicolas Maduro, and his wife in the capital and extradited them to New York three days ago. The Maduro couple currently face charges including drug trafficking.
Based on recent pre-blockade speed in Venezuela, the amount announced by Trump is equivalent to approximately 30 to 50 days of Venezuela’s oil production. The United States itself has a daily oil production of about 13.8 million barrels.
Based on the current price of the US benchmark crude oil West Texas Intermediate (WTI), the trading volume of this batch of oil could exceed $2.8 billion.
Venezuela has the largest proven oil reserves globally.
However, despite the significant oil reserves held by this South American country, its oil production has declined from its peak in the 1970s due to decades of facility neglect and the withdrawal of some US oil companies.
According to the Wall Street Journal’s report on Tuesday, Trump plans to meet with representatives of major US oil companies at the White House on Friday, including Chevron, ConocoPhillips, Exxon Mobil, and other domestic producers, to “discuss significant investments in the Venezuelan oil sector.”
Trump has already stated that US oil companies will ultimately invest billions of dollars to restore Venezuela’s aging oil production facilities.