Energy Brief: Trump Eyes Venezuela Oil Return
U.S. Energy Policy & Markets
*Government officials in Caracas and Washington are discussing exporting Venezuelan crude to refiners in the United States, five government, industry and shipping sources told Reuters on Tuesday, a deal that could divert supplies away from China while helping state company PDVSA avoid deeper output cuts. Venezuela has millions of barrels of oil loaded on tankers and in storage tanks that it has been unable to ship due to a blockade on exports imposed by U.S. President Donald Trump since mid-December.
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President Donald Trump predicted Monday that within 18 months, American oil companies could be operating in Venezuela, saying the move would require “a lot of money” but could happen sooner. Trump made the comments during an interview with NBC News.
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Venezuela holds the world’s largest proven oil reserves at 303 billion barrels, but much of the crude is extra-heavy, requiring specialized refining. Analysts say Louisiana’s Gulf Coast, home to six of the world’s largest heavy-crude refineries, is positioned to receive significant volumes if Venezuelan oil flows resume.
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Wyoming advocates accuse the Bureau of Land Management of sidestepping environmental law by issuing 255 drilling permits to a firm tied to a major Trump campaign donor.
Power & Infrastructure
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Developers behind Revolution Wind (Rhode Island) and Empire Wind (New York) joined Dominion Energy in challenging a Trump administration order halting five offshore wind projects over unspecified national security concerns.
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Governors of Connecticut, Massachusetts, New York, and Rhode Island demanded a classified briefing explaining the alleged threats posed by the paused offshore wind developments.
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Maryland regulators ordered that a proposed gas-fired power plant be allowed through a newly created fast-track permitting process.
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The Tennessee Valley Authority announced plans to add gas-fired turbines near Memphis, pushing its new gas construction total above 3,600 MW.
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West Virginia landowners continue to oppose NextEra Energy Transmission’s proposed 107-mile MidAtlantic Resiliency Link transmission line.
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West Virginia lawmakers are also weighing legislation to give local governments more authority over data center development after restrictions were imposed last year.
World Energy Developments
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Venezuela, once producing more than 3.5 million barrels per day in the 1970s, now pumps roughly 1 million barrels per day. Analysts say foreign investment could double or triple output. JPMorgan estimates that control of Venezuelan oil could give the U.S. access to 30% of global reserves.
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Japan’s Dai-ichi Life invested $30 million in the world’s first corporate bond dedicated solely to carbon capture and storage (CCS). Issued by the Port of Rotterdam Authority, the bond funds CO₂ capture and storage infrastructure.