Will US Control Venezuela Oil Sales? Trump's Energy Boss Chris Wright Says This

(MENAFN- Live Mint) United States Energy Secretary Chris Wright said the country will control future oil sale from Venezuela, days after it toppled the Nicolas Maduro government. Chris Wright also said that the Trump administration would use the proceeds from oil sales to rebuild the nation's beleaguered economy.

Speaking at the Goldman Sachs Energy, Clean Tech & Utilities Conference in Miami, Chris Wright said,“If we control the flow of oil and the flow of the cash that comes from those sales, we have large leverage. We need to have that leverage and that control of those oil sales to drive the changes that simply must happen in Venezuela.”

Chris Wright estimated Venezuela's crude production could be increased by several hundred thousand barrels a day in the short to medium term.

The US government plans to deposit proceeds from the sales into government accounts and use them to benefit the Venezuelan people.

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Since toppling the Maduro government, Donald Trump has been pushing Chevron Corp., ConocoPhillips and Exxon Mobil Corp and others to revive production and rebuild Venezuela's decrepit oil infrastructure.

The task is reportedly massive. According to Bloomberg, it may cost $10 billion per year for the next 10 years to fix pipelines, pumping stations and other equipment that has been eroding after“years of corruption, underinvestment and neglect.”

Venezuela sits atop the world's largest crude reserves, but companies will want to ensure there's a stable government in place before making any long-term investments. They will also want some degree of confidence Washington will support their presence in Venezuela even after Trump is no longer in office.

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The Trump administration has already had conversations with multiple oil companies, according to an official. The president is set to meet with energy executives at the White House within the next week, according to people familiar with the matter.

Secretary of State Marco Rubio also may attend the sit-down that's being planned, the people said.

Chevron is the only US major operating in Venezuela, working under a special license from the Washington. Exxon and ConocoPhillips previously operated inside the country but left after their assets were nationalized by Maduro's predecessor, Hugo Chávez, in the mid-2000s.

(With inputs from Bloomberg)

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