The United States just announced it's taking the wheel on Venezuela's oil industry, and according to Energy Secretary Chris Wright, there's no expiration date on this arrangement.

America Takes Control of Venezuelan Oil Operations

Speaking at the Goldman Sachs Energy, CleanTech & Utilities Conference in Miami on Wednesday, Wright laid out a plan that's pretty straightforward in its ambition. The U.S. will oversee the sale of Venezuela's oil production "indefinitely," he said. "We will sell the production that comes out of Venezuela into the marketplace."

Here's how it's supposed to work: The money from those oil sales gets funneled back into Venezuela for the benefit of its people. Wright explained the U.S. would provide diluent necessary to restart production, allow imports of parts and services to stabilize the country's battered oil infrastructure, and ultimately create the conditions for output growth. The goal? Getting major American companies back into the game with renewed investment.

President Donald Trump added another layer to this on Wednesday via Truth Social, announcing that Venezuela would be required to purchase exclusively American-made products with the proceeds from this new oil arrangement. That means agricultural products, medicines, and equipment to upgrade Venezuela's energy facilities. It's essentially a captive market for American exports tied directly to oil revenues.

The Numbers Don't Add Up, Say Skeptics

Not everyone's buying what's being sold here. On Tuesday, Trump claimed Venezuela would be turning over 30-50 million barrels of sanctioned crude oil to the U.S., with him controlling the proceeds.

Economist Paul Krugman pushed back hard on this narrative, arguing this is essentially a war for "oil fantasies" because the vast oil wealth Trump envisions simply doesn't exist. Krugman pointed out that Venezuela's oil reserves magically tripled on paper under Hugo Chávez, but that was due to reclassification of heavy crude rather than actual discoveries. The real tell? Production has remained stagnant despite these supposedly massive reserves, which suggests those impressive figures are mostly fiction.

Goldman Sachs weighed in too, noting that the political upheaval in Venezuela has reset the global oil market dynamics. They're seeing "two-sided" risks for oil prices in 2026 and a more bearish supply story beyond that timeframe. This shift could have major implications for Venezuela's oil industry and everyone connected to it.

Market Reaction

Brent Crude oil was trading 0.32% higher at $59.53 per barrel when markets were last checked.

Over the past week, the Energy Select Sector SPDR Fund (XLE) managed to edge 0.40% higher, while the iShares U.S. Oil & Gas Exploration & Production ETF (IEO) fell 1.23%.

The big question hanging over all of this: Can the U.S. actually restart meaningful production from Venezuela's degraded oil infrastructure, and if so, how much oil is really there to produce? The answers will determine whether this ambitious plan delivers on its promises or becomes another chapter in Venezuela's long history of unfulfilled oil potential.