China bought ‘legitimate’ Venezuelan oil from US after Maduro seizure, energy secretary says

In January 2026, the US government, under President Donald Trump, declared its intention to control Venezuelan oil sales indefinitely to force political changes in Venezuela. This announcement followed the abduction of Venezuelan leader Nicolas Maduro and a deal for Venezuela to turn over a significant amount of sanctioned oil to the US. Energy Secretary Chris Wright stated the US needs leverage over Venezuelan oil. Oil company executives are scheduled to meet with President Trump to discuss potential investments in Venezuela. While experts suggest the US government has the power to intervene, geopolitical challenges exist, particularly with the rise of China as a global power, potentially limiting US influence compared to previous interventions like in Iraq.

Following the capture of Nicolás Maduro, the US, under Donald Trump, will reportedly receive up to 50 million barrels of Venezuelan oil, with the possibility of continued supply and eased sanctions to allow indefinite sales. Trump aims to control the revenue, selling up to $3 billion worth of Venezuelan crude into the global market, potentially driving down oil prices. Global oil prices initially fell on Wednesday in response to the news. This move could disrupt Venezuela's oil exports to China, which currently receives 80% of its crude, potentially increasing tensions between the US and China, who criticized the action as a violation of international law. Trump stated that the US Energy Secretary will oversee the deal, ensuring the oil is directly transported to US ports.

President Trump announced that Venezuela would begin supplying the United States with 30 to 50 million barrels of oil, roughly two months of their daily production. Trump stated he would control the profits to benefit both the Venezuelan and American people. The announcement follows claims that President Maduro was captured and taken to the U.S., and Trump's assertion that American oil companies could reclaim Venezuelan interests. The details of the agreement, including what Venezuela would receive in return and the legal basis for the U.S. claim, remain unclear. Administration officials are scheduled to meet with Western oil companies to discuss next steps, while Trump will meet with major oil companies in Washington. Venezuela's oil production has been hampered by political turmoil, economic issues, and U.S. sanctions.

Following a hypothetical military operation removing Nicolás Maduro from power in Venezuela, President Trump claims US oil companies could be operational there within 18 months. He suggests the companies would be reimbursed for their investments by the US government or through revenue generated. Trump believes increased Venezuelan oil production would benefit the US by lowering oil prices. However, analysts are skeptical, citing the need for a stable government, the high costs involved, and the time required to restore Venezuela's oil output. Chevron, the only US firm currently operating in Venezuela, stated it remains focused on employee safety and compliance with regulations. Venezuela possesses the world's largest proven oil reserves, but its production has declined significantly.

Following the U.S. abduction of Venezuelan President Nicolas Maduro in January 2026, uncertainty surrounds Venezuela's economic future. The U.S. announced it will control Venezuelan oil sales "indefinitely," raising concerns about revenue for Caracas. The U.S. plans to market sanctioned oil, holding proceeds in U.S. Treasury accounts to be shared between the two countries. A deal was also struck for Venezuela to export up to $2 billion worth of crude oil to the U.S. In the long term, the U.S. may ease sanctions on Venezuelan oil imports and equipment. The impact on Venezuela's economy hinges on sanctions relief, relations with the U.S., and control of oil revenues, especially considering that nearly 80% of Venezuela's budget was allocated to social spending.

Following the ousting of Nicolás Maduro, Donald Trump urged oil companies like Chevron and ExxonMobil to invest $100 billion in Venezuela's oil infrastructure. At a White House roundtable, Trump promised "total safety" and security for these investments, emphasizing the opportunity for American oil companies to extract resources. He stated that the investment would come from the oil companies themselves, not the US government, and that the US would benefit from lower energy prices. While some oil executives expressed support and willingness to rebuild Venezuela's oil infrastructure, analysts remain skeptical about the speed of investment. Trump also warned that other companies were ready to take their place if they were not interested in the rebuilding efforts.

Following the capture of Nicolás Maduro, President Trump aims to dramatically increase oil production in Venezuela, which holds the world's largest oil reserves. Trump envisions US oil companies investing billions to revitalize Venezuela's oil infrastructure, potentially exceeding previous production levels. Experts warn that significantly increasing Venezuela's oil output would have severe climate consequences, adding substantial carbon dioxide to the atmosphere. Even a moderate production increase to 1.5 million barrels a day would generate emissions exceeding those of entire countries like the UK and Brazil. While Trump claims the US will be reimbursed for its investment, major oil companies have not yet committed to the plan.