U.S. must control Venezuela’s oil sales indefinitely to rebuild economy, energy secretary says

Core Insights - The US aims to control Venezuela's oil sales and revenue to stabilize its economy and rebuild its oil sector, as stated by Energy Secretary Chris Wright [1][2] - The US has initiated a deal to export up to $2 billion worth of Venezuelan crude to the US, indicating a shift in Venezuela's oil policy under interim President Delcy Rodriguez [6] Oil Sales and Revenue Control - Control over Venezuelan oil sales is deemed essential to drive necessary changes in the country, with revenues intended to stabilize the economy and repay oil majors for past losses [2][11] - The US plans to market stored Venezuelan oil first, followed by future production, with revenues managed by the US government [4] Production and Investment - Venezuela possesses the world's largest oil reserves but currently contributes only about 1% to global supply due to decades of underinvestment [3] - The US is in discussions with oil companies to explore conditions for boosting Venezuela's oil production in the long term [5][10] Market Reactions - Shares of US refiners such as Marathon Petroleum, Phillips 66, and Valero Energy saw increases between 2.5% and 5% following news of the oil sales [8] - The upcoming meeting at the White House with major oil companies aims to discuss strategies for increasing crude output from Venezuela [9] Future Prospects - Short-term production increases are considered feasible with the right equipment and technology, but a return to previous production levels will take years [12][13] - The repayment of debts owed to ConocoPhillips and Exxon Mobil is acknowledged as a long-term issue, contingent on the stabilization of Venezuela's economy [11][12]