US says military operation in Venezuela increases control over energy resources
WASHINGTON
U.S. Vice President JD Vance said on Jan. 6 that Washington’s operation in Venezuela is designed to choke off what he described as “energy money” flowing to narco-terrorism networks, while also boosting U.S. leverage over global energy supplies.
In an interview with Salem News Channel, Vance said the United States “wants what is best” for Venezuelans and Americans but warned that Venezuela’s next leadership would have to align with Washington. “Whoever the leader of that country is, is going to have to play ball with the United States,” he said.
Vance argued that prior Venezuelan policies allowed rivals access to discounted energy, with revenues allegedly used to bankroll activity that threatens the United States. He said the operation would “cut off that flow” and, over time, reduce fuel costs at home.
"I think it's going to save lives. It's going to mean cheaper gas and energy prices for Americans. And maybe most importantly, it's going to mean that we have more control over the energy resources that exist in the world, which makes it possible for us, of course, to achieve better economic results for our people and to use those energy resources as leverage to achieve greater peace and prosperity," he added.
Separately, Interior Secretary Doug Burgum told Fox News that U.S. “energy strength” would allow Washington to absorb Venezuelan supply without major domestic price shocks.
Burgum said U.S.-built refineries on the southern coast of the Gulf of Mexico were designed to be able to process heavy crude oil extracted in Venezuela, which boasts the world's largest proven reserves of the hydrocarbon.
"Then, you need to dilute that heavy crude with a lighter product, and of course, we have an excess of that lighter product here because of the shale oils," he added.
Burgum also framed the operation as an opportunity for Venezuela’s economy.
"Venezuela has an opportunity now to actually have capital come in and rebuild their economy," he said, comparing the South American nation’s potential to the energy wealth of Saudi Arabia.
"Saudi Arabia is one of the richest countries in the world. Venezuela, one of the poorest countries in the world. It doesn't have to be that way with American technology and American partnership. Venezuela can be transformed, and that's a win for this hemisphere. It's a win for the people of Venezuela," Burgum said.
On Jan. 6, President Donald Trump said Venezuela’s “interim authorities” would transfer 30 to 50 million barrels of sanctioned oil to the U.S. to be sold at market prices, with proceeds controlled by the U.S. administration.
Crude has seen wild swings since Jan. 3, with Trump ordering the toppling of Nicolas Maduro and saying Washington would run the country while demanding "total access" to its key resource.
But it sank as much as two percent on Jan. 6 and around one percent on Jan. 7 after Trump announced the latest development.
"The Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil, to the United States of America," he wrote on his Truth Social platform.
"This oil will be sold at its market price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States."
Analysts said the shipments lowered the risk that Caracas would have to cut output owing to its limited storage capacity, easing supply concerns, but added that the outlook for the commodity was lower prices.
That comes as the crude market remains well stocked after OPEC+ agreed to boost output.
Venezuela sits on about a fifth of the world's oil reserves, but observers pointed out that a quick ramp-up of output would be hamstrung by several issues, including its creaking infrastructure, low prices and political uncertainty.