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Trump Administration Outlines Private Fund Plan to Sell 30‑50 Million Venezuelan Oil Barrels

Updated (2 articles)

Initial Sale Volume and Private Management The administration plans to seize and sell an initial 30 million to 50 million barrels of Venezuelan oil that were under sanctions, keeping the proceeds in U.S.-controlled accounts rather than Treasury channels [2]. Private oil traders and offshore banks would handle the transactions, a structure described by senior officials as a “makeshift” strategy to generate revenue quickly [1][2]. Proceeds are promised to be funneled back to benefit the Venezuelan people and to purchase American-made goods, according to Trump’s social‑media posts [1].

Constitutional and Congressional Oversight Issues Article I of the Constitution grants Congress the power to raise and spend funds, prompting lawmakers to question the president’s unilateral control of oil revenues [1]. Senators, including Johnson, have begun reviewing the proposal while Rubio frames the plan as leverage to aid Venezuelans, emphasizing governmental oversight [1]. Critics argue the approach bypasses established fiscal checks and could set a precedent for executive‑only fund management [2].

Industry Investment Pitch Meets Legal and Security Concerns Energy Secretary Chris Wright and White House officials have urged U.S. energy firms to commit billions toward rebuilding Venezuela’s oil infrastructure after the initial sales [2]. Industry executives remain wary, citing ongoing repression, militia activity, and unclear legal authority as barriers to long‑term investment [2]. The administration’s outreach includes a planned meeting with energy CEOs to address these risks and to propose incentives for participation [2].

Negotiations With Interim Venezuelan Leaders Remain Unsettled The plan lacks formal cooperation from interim President Delcy Rodriguez and state oil company PDVSA, and officials have warned of “steep consequences” if agreement is not reached [2]. Ongoing talks aim to secure Rodriguez’s consent for the seizure and sale of oil assets, but legal authority for such actions remains ambiguous [2]. This uncertainty complicates the timeline for when U.S. control might be transferred back to Venezuelan authorities.

Trump’s Public Messaging Links Revenue to U.S. Goods In a series of posts, Trump asserted that Venezuela would use oil proceeds to purchase only American products, signaling a reversal of long‑standing sanctions [1]. The messaging ties the revenue stream directly to U.S. consumer markets and frames the plan as a win‑win for both nations [1]. This narrative reinforces the administration’s claim that the strategy will bolster the Venezuelan economy while expanding U.S. export opportunities.

Sources

Timeline

2010s‑2025 – For years, U.S. sanctions restrict trade with Venezuela, limiting the country’s access to American goods and financial systems, which frames the administration’s push to redirect oil revenue toward U.S. markets [1].

2025 – After the ouster of President Nicolás Maduro, an interim government led by Delcy Rodríguez takes power, creating a political vacuum that the Trump administration seeks to fill with its oil‑sale scheme [2].

Jan 8, 2026 – Senior Trump officials outline a makeshift strategy to seize and sell millions of barrels of Venezuelan oil, arguing that U.S. control will prevent chaos and block rival powers following the leader’s removal [2].

Jan 8, 2026 – The plan calls for an initial sale of 30 million‑50 million barrels, with proceeds placed in U.S.–controlled offshore accounts and later funneled back to benefit the Venezuelan people [2].

Jan 8, 2026 – Trump posts that the oil proceeds will be managed as a private slush fund, using private traders and offshore accounts rather than Treasury channels, and asserts that Venezuela will purchase only American‑made goods with the money [1].

Jan 8, 2026 – Senator Marco Rubio frames the market‑based oil sale as leverage to end the embargo, saying the revenue will help Venezuelans while the United States retains oversight of the funds [1].

Jan 8, 2026 – White House officials Leavitt and Wright explain that global marketing of the oil will flow into U.S.–controlled accounts to ensure legitimate distribution and to reduce criminal activity linked to Venezuelan oil [1].

Jan 8, 2026 – Constitutional scholars note that Article I gives Congress the power to raise and spend funds, raising legal questions about the president’s unilateral control of oil revenues; lawmakers begin reviewing the proposal [1].

Jan 8, 2026 – The administration has not secured formal cooperation from interim President Rodríguez or state oil company PDVSA, and officials warn of steep consequences if negotiations fail, highlighting unresolved legal and logistical hurdles [2].

Jan 8, 2026 – Members of Congress and former Treasury officials alarmed by the plan’s reliance on international traders and offshore accounts, questioning oversight, distribution decisions, and compliance with U.S. law [2].

Jan 8, 2026 – Energy‑industry executives express deep skepticism about committing tens of billions to rebuild Venezuela’s oil sector, citing security risks, legal uncertainty, and lack of guaranteed returns [2].

Jan 9, 2026 – The White House schedules a meeting with major energy CEOs to pitch the Venezuelan oil plan and seek private‑sector investment, marking the administration’s next step to secure long‑term rebuilding funds [2].

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