President Donald Trump has announced a new energy agreement between the United States and Venezuela, aiming to boost national security and economic prosperity for both countries. The deal follows the recent apprehension of Venezuelan leader Nicolas Maduro, who was indicted on several violent crime charges, including narco-terrorism conspiracy.
According to the announcement, Secretary Wright and the Department of Energy are collaborating with interim Venezuelan authorities and private industry partners to implement the terms of this agreement. “Secretary Wright and the Department of Energy are working with the Interim Venezuelan Authorities and private industry to execute this deal,” states the release.
Under this arrangement, the U.S. government has started marketing Venezuelan crude oil on global markets. Leading commodity marketers and major banks have been engaged to manage sales and provide financial backing. All proceeds from these sales will be deposited in U.S.-controlled accounts at internationally recognized banks to ensure proper oversight and integrity in how funds are distributed.
“All proceeds from the sale of Venezuelan crude oil and oil products will first settle in U.S. controlled accounts at globally recognized banks to guarantee the legitimacy and integrity of the ultimate distribution of proceeds,” according to officials. The U.S. government will determine how these funds are allocated for both American and Venezuelan benefit.
Initial sales are expected to include approximately 30–50 million barrels of oil, with ongoing transactions planned for an indefinite period. Only authorized channels consistent with U.S. law will be used for transporting oil into or out of Venezuela.
The United States is also easing some sanctions to allow for legal transportation and sale of Venezuelan crude oil products worldwide. In addition, American light crude (diluent) will be supplied as needed to help process Venezuela’s heavy crude oil more efficiently.
As part of broader modernization efforts, select imports of oil field equipment, parts, and services from the U.S. will be permitted to address years of production decline in Venezuela’s energy sector. This includes support from American companies as well as other international partners.
Venezuela’s electricity infrastructure has suffered significant setbacks due to long-term underinvestment and mismanagement, resulting in a drop in electricity production by over 30 percent nationwide. The United States plans to assist in improving Venezuela’s power grid as a means to support increased oil output, expand economic opportunities, and enhance living conditions for Venezuelans.
“This shift devastated Venezuela’s economy, impoverished its citizens, and funded global terrorism,” reads part of the statement describing previous decades’ policies in Venezuela.
The administration describes these measures as steps toward restoring prosperity, safety, and stability throughout both nations while reestablishing Venezuela as a reliable partner within the Western Hemisphere.
