Energy Secretary Chris Wright said Sunday that the US government taking ownership stakes in oil companies represents a “very real possibility,” signaling a dramatic shift after the administration’s $100 billion private investment pitch flopped Friday.
“That’s going to be up to American businesses. That’s certainly a very real possibility,” Wright told CBS‘s “Face the Nation” when asked whether the administration wants to own portions of oil companies operating in Venezuela.
Oil executives at Friday’s White House meeting called Venezuela “uninvestable” and made no commitments. Earlier that week, Wright had already acknowledged at a Goldman Sachs conference that major oil companies won’t commit serious capital anytime soon, given political instability and security concerns.
Read: US to Control Venezuelan Oil Sales ‘Indefinitely,’ Energy Secretary Says
Wright has outlined an “indefinite” plan for the US to control Venezuelan oil sales, with revenues deposited into US-controlled accounts. He described this as “leverage” to force political changes but provided few specifics on how funds would benefit Venezuelans.
Democratic Senator Chris Murphy called the plan “absolutely stunning,” saying: “They are talking about stealing the Venezuelan oil at gunpoint for a period of time undefined as leverage to micromanage the country.”
Senator Ed Markey demanded Wright provide legal basis for the plans, calling the proposal “nothing less than a government-run takeover of a foreign commodity revenue stream.”
Government ownership would intensify pushback from oil companies that cite Venezuela’s broken legal system, domestic producers warning of price crashes, and Democrats who call it theft.
Trump also signed an executive order on Friday that would block courts from seizing Venezuelan oil revenues — preventing ExxonMobil and ConocoPhillips from collecting billions in arbitration awards from past nationalizations.
Wright said Sunday the administration expects “relatively rapid change” in Venezuela eight days after capturing former President Nicolás Maduro, adding: “We don’t have a legitimate government of Venezuela today. We want to bring a representative government to the people of Venezuela.”
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
