US to control Venezuela oil sales 'indefinitely' - Energy Secretary

The US plans to oversee the sale of Venezuelan oil “indefinitely”, Energy Secretary Chris Wright said on Wednesday, while President Donald Trump added that the proceeds would be used to "only" buy American goods.

His remarks, made at an energy conference in Florida, came after US President Donald Trump on Tuesday said Venezuela would surrender 30 million to 50 million barrels of oil, or up to two months’ worth of daily production, to America, adding that he would control the distribution of the profits from those sales

“Going forward we will sell the production that comes out of Venezuela into the marketplace,” Wright, a former oil industry executive, said. “We need to have that leverage and that control of those oil sales to drive the changes that simply must happen in Venezuela.”

The US launched its military operation to remove Venezuelan president Nicolas Maduro from power earlier this month, after weeks of pressure. Trump has since been explicit that Venezuela must now open up its vast oil reserves to US companies or risk further military invention.

The country already has millions of barrels of oil loaded in tankers and storage tanks that it has been unable to ship after Trump imposed a blockade on exports late last year. The decision last month to begin targeting tankers carrying Venezuelan crude to Asian markets had paralysed exports.

To maintain production, the state oil company, known as PDVSA, had been redirecting crude oil into storage tanks and turning tankers idling in ports into floating storage facilities.

Later in the day Trump added in a social media post that "Venezuela is going to be purchasing ONLY American Made Products, with the money they receive from our new Oil Deal".

"These purchases will include, among other things, American Agricultural Products, and American Made Medicines, Medical Devices, and Equipment to improve Venezuela’s Electric Grid and Energy Facilities."

"In other words, Venezuela is committing to doing business with the United States of America as their principal partner — A wise choice, and a very good thing for the people of Venezuela, and the United States."

Reporting by Frank Prenesti for Sharecast.com