Trump to Decide Oil Companies Operating in Venezuela

US President Donald Trump has announced that his administration will determine which oil companies can operate in Venezuela, following a meeting with oil executives at the White House. This move comes less than a week after the US abducted Venezuela’s President Nicolás Maduro.

According to the White House, Trump stated that the US wants to permit American oil companies to re-enter Venezuela and exploit its enormous crude oil resources. Venezuela holds the world’s largest proven oil reserves, estimated at 303.221 billion barrels.

The Trump administration has imposed sanctions on Venezuela, including a blockade on sanctioned oil tankers, to stifle the country’s vital oil exports. The US has also seized an oil tanker off the coast of Venezuela and imposed sanctions on six ships that transport Venezuela’s oil.

Trump has made it clear that he wants the US to benefit from Venezuela’s oil wealth. He said the oil exported under embargo by Caracas is “oil stolen from the international community”. The US plans to sell Venezuelan oil at market rates, rather than the discounted rate it has been selling at, and use the revenue to benefit the Venezuelan people.

The move has sparked debate, with some questioning whether Trump has the authority to seize and sell Venezuelan oil. House Speaker Mike Johnson said lawmakers are reviewing the situation, but noted that the fact the oil is sanctioned gives the administration more leeway.

Venezuela’s oil industry is currently struggling, with production having plunged more than 70% since its peak in the late 1990s. The country’s economy is heavily reliant on oil exports, which account for at least 95% of its overseas revenue.

Source: Bloomberg, Firstpost, CNN

Author: Korkor Anumu