Venezuela will 'turn over' 50M oil barrels to US: Trump
What's the story
United States President Donald Trump has announced that Venezuela "will be turning over" 30-50 million barrels of "high quality, sanctioned oil to the United States of America." The announcement came after a surprise military operation in which Venezuelan President Nicolas Maduro was ousted. Trump said the oil would be sold at its market price and the funds would be controlled by him.
Financial management
Trump to control funds from Venezuelan oil sales
Trump stressed that the money would be used for the benefit of both Venezuela and the US. "This...money will be controlled by me...to ensure it is used to benefit the people of Venezuela and the United States!" he said. Venezuela has millions of barrels of oil stacked on tankers and in storage tanks that it has been unable to ship owing to the blockade imposed by Trump as part of the pressure campaign that culminated in the removal of Maduro.
Investment prospects
US oil industry to invest in Venezuela
Trump had also earlier hinted at major investments from the US oil industry in Venezuela. He said he expects the industry to be "up and running" within 18 months. However, analysts have warned that it could take up to a decade and tens of billions of dollars to restore Venezuela's former output levels.
Industry meeting
US petroleum companies to meet Trump administration
Representatives from major US petroleum companies are scheduled to meet with the Trump administration this week, CBS reported. But analysts remain skeptical about the impact of these plans on global oil supply and prices. They argue that firms would seek assurances of a stable government before investing, and even then, it would take years for projects to yield results.
Justification
Trump's justification for Maduro's ouster
Trump has justified the ouster of Maduro by claiming that Venezuela "unilaterally seized and stole American oil." Vice-President JD Vance echoed these sentiments, saying that "Venezuela expropriated American oil property and until recently used that stolen property to get rich and fund their narcoterrorist activities." However, this narrative oversimplifies a complex history between US oil companies and Venezuela. The country nationalized its oil industry in 1976 and in 2007, President Hugo Chavez tightened state control over foreign-owned assets.
Nationalization impact
Venezuela's nationalization of oil industry
A World Bank tribunal had ordered Venezuela to pay $8.7 billion to ConocoPhillips in compensation for this 2007 move, but the payment is still pending. BBC Verify's Ben Chu clarified that while US companies operated under license agreements, the oil itself was never owned by them, making claims of "stolen" American oil too simplistic. Venezuela has an estimated 303 billion barrels of proven reserves, the world's largest, although oil output has been declining since the early 2000s.