'US Will Not Allow China To Have Huge Control Over Venezuela,' Says Energy Secretary Chris Wright As Oil Policy Reset Be

(MENAFN- Live Mint) US Energy Secretary Chris Wright said on Thursday (January 8) that Washington will not allow China to gain huge control over Venezuela as the United States moves to take charge of Caracas's oil sector - a shift with major implications for global markets and geopolitical competition.

Wright stressed that there can still be commerce with China and that President Donald Trump wants peaceful relationships going forward, even as the US redirects Venezuela's oil flows toward American and allied interests.

Washington's new role in Venezuelan oil

Wright announced on Wednesday (January 7) that Washington will oversee the sale of Venezuelan crude oil indefinitely.

"We're going to market the crude coming out of Venezuela, first this backed-up stored oil, and then indefinitely, going forward, we will sell the production that comes out of Venezuela into the marketplace," Wright said at an energy event in Miami.

Aftermath of Maduro's removal

The statement comes just days after US forces toppled Venezuelan leader Nicolas Maduro, capturing him and his wife in Caracas and transferring them to New York to face drug charges. Maduro's deputy Delcy Rodriguez and allies remain in charge, though the interim president's role in the oil handover remains unclear.

Sanctions waiver for oil exports

Wright suggested that sanctions on Venezuela's oil sector would be lifted to enable exports.

"As we make progress with the government, you know, we'll enable the importing of parts and equipment and services to kind of prevent the industry from collapsing, stabilize the production, and then as quickly as possible, start to see it growing again."

US to supply diluting agents

The United States will provide the diluting agents necessary to process Venezuela's extra-heavy crude for shipment. Wright emphasized that cooperation between Washington and Caracas would be essential.

"So it is going to require this cooperation between -- and pressure between -- the United States and Venezuela."

Production challenges

Wright acknowledged the scale of investment needed to restore Venezuela's oil industry.

"It would require tens of billions of dollars and significant time to get Venezuela's production back to historical highs of over three million barrels per day. But why not?"

In the short term, he noted that several hundred thousand barrels could be added with modest investments in spare parts and repairs.

Venezuela's oil reserves

Venezuela claims to hold about 20% of the world's oil reserves, but experts warn that ramping up production will be hindered by aging infrastructure, low oil prices, and political instability.

Trump's control of oil revenues

President Donald Trump announced on Tuesday that 30–50 million barrels of Venezuelan crude would be shipped to US ports, with revenues-estimated at over $2 billion.

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