Trump Announces License for Oil Production in Venezuela: A Massive Return for Venezuelan Energy

Informed sources reported that the U.S. government is preparing to issue a general license allowing American companies to produce oil and gas in Venezuela, in a move aimed at increasing oil production in the OPEC member state following the capture of President Nicolás Maduro in a U.S. raid last month.

According to sources, the Office of Foreign Assets Control of the Treasury Department will allow companies to explore for crude oil and natural gas and to pump them, after previously issuing a license allowing the sale, storage, and refining of Venezuelan oil.

The Treasury Office also issued a separate license allowing the sale of American diluents to process Venezuelan heavy oil and convert it into exportable oil.

White House spokesperson Taylor Rogers stated that the president's team is working "around the clock to ensure that American oil companies can invest in Venezuelan oil infrastructure."

For his part, U.S. President Donald Trump confirmed that Washington will control oil sales and revenues indefinitely, since the capture of Maduro on January 3, indicating that the United States plans to invest $100 billion to restore the Venezuelan energy industry to its historical peak, with profits to be shared among Venezuelans, American companies, and the United States.

This decision comes at a time when Venezuelan production is suffering from a sharp decline, having dropped to less than one million barrels per day compared to its previous highs of three million barrels per day, due to neglect, mismanagement, lack of investment, and long-term sanctions.

In a practical step to secure supplies, Washington and Caracas agreed last month to sell 50 million barrels of Venezuelan oil, while European trading companies Vitol and Trafigura will market these supplies.

Shipping data showed that Venezuelan oil exports rose in January to about 800,000 barrels per day, up from 498,000 barrels in December.

This step represents a radical shift in U.S. policy towards Venezuela and opens the door for a massive return of foreign investment in the energy sector, amid hopes of restoring Venezuela to its former status as one of the largest oil producers in the world.