U.S. "Oil Takeover" of Venezuela, the Global Energy Landscape is Rewritten

U.S. Secretary of Energy Chris Wright announced on the 7th that the United States will control Venezuela’s oil sales “indefinitely,” and expects Venezuela’s oil production to potentially increase by 50% within 18 months. This is not only an energy policy but also a reshuffle of the global energy landscape. The U.S. government plans for major oil companies to lead oil extraction in Venezuela, with all sales revenue deposited into accounts controlled by the U.S. government, and then repaid to Venezuela for the purchase of American goods. This “oil-for-US goods” closed loop has already been initiated, and the market is reacting swiftly.

Policy Core: Comprehensive Control from Production to Sales

The U.S. plan involves three key stages:

• Production: Major U.S. oil companies enter Venezuela, take over oil extraction operations, and provide heavy crude diluents, parts, and equipment support
• Sales: Venezuela’s oil sales rights are directly controlled by the U.S. government, including existing inventories and “indefinite” future sales
• Revenue: All oil sales income is deposited into dedicated accounts managed by the U.S. government, then redirected to purchase U.S. agricultural products, pharmaceuticals, medical devices, and energy equipment

This means the lifeline of Venezuela’s oil has been effectively taken over by the U.S. According to relevant information, the U.S. has obtained the first batch of 30 to 50 million barrels of “sanctioned high-quality oil,” and this is just the beginning.

Reality and Expectations of Production Growth

Wright stated that Venezuela’s daily oil production could increase by hundreds of thousands of barrels in the coming years. Based on this growth rate, a 50% increase within 18 months is achievable. However, he also admitted that returning Venezuela’s oil production to its historical high levels still requires hundreds of billions of dollars in investment and “a considerable amount of time.” In other words, the U.S. can gain immediate access to oil while also benefiting long-term through technology and capital input.

Immediate Market Reactions

The U.S. move has triggered multi-layered responses in the market:

U.S. stock markets show mixed performance. Dow drops 466 points (down 0.94%), S&P 500 falls 0.34%, Nasdaq rises 0.16%. Leading tech stocks rally, Intel up 6.47%, Google up 2.43%, Microsoft and Nvidia each around 1%. Defense stocks surged after Trump “named and suppressed,” Lockheed Martin shifted from gains of over 2% to nearly 5% losses.

Multidimensional Impact on Geopolitics and Industry

Short-term vs. Long-term Differences

In the short term, the expected slight increase in U.S. oil supply may suppress oil prices. However, this heavy intervention intensifies global energy supply chain uncertainties, raising the risk of geopolitical premiums in oil prices in the medium to long term. Any political instability in Latin America could trigger market volatility.

Direct Benefits to U.S. Industry

The biggest winners of this plan are U.S. domestic industries. According to Trump’s statements, Venezuela’s oil revenues will be used solely to purchase U.S.-made products. This means:

• Agriculture: Expansion of U.S. agricultural product sales channels
• Pharmaceuticals: Increased exports of medicines and medical devices
• Energy Equipment Manufacturing: Rising demand for grid and energy infrastructure upgrade equipment

This is a typical “resource and market dual-binding” model.

Reshaping the Geopolitical Landscape

Latin American energy dynamics are being forcibly rewritten. Venezuela has transformed from an energy powerhouse into a U.S. oil reserve, with profound implications for regional power plays. How other Latin American countries respond to this U.S. model remains to be seen.

Summary

U.S. control over Venezuela’s oil is not only an energy policy adjustment but also a major geopolitical move. While the 50% production increase within 18 months may temporarily suppress oil prices, it also heightens global energy supply uncertainties in the long run. U.S. domestic industries such as agriculture, pharmaceuticals, and energy equipment will benefit directly, and the global energy landscape is being redefined. For market participants concerned with commodities and geopolitical risks, ongoing developments in this “oil takeover” warrant close attention.