Denial of Favoritism Allegations in Citgo Sale
Chris Wright, U.S. Secretary of Energy, announced on January 11 (local time) that the United States will intervene in Venezuela's oil industry to increase oil production.
In an interview with CBS that day, Secretary Wright stated, "U.S. involvement in the Venezuelan oil industry will expand," adding, "We will see more American companies entering the market and an increase in production."
When asked whether the U.S. government would take ownership of Venezuela's state-run oil company PDVSA, he firmly replied, "No." Secretary Wright explained, "Currently, we are managing their crude oil sales," and added, "We are blocking the overseas export of Venezuelan oil. All crude oil is traded through American companies, and the oil that results from these transactions enters the market."
Some observers have speculated that after the ousting of Venezuelan President Nicolas Maduro, the U.S. government would strengthen its control over PDVSA and directly secure, sell, and distribute the crude oil produced by PDVSA. In fact, the U.S. government has agreed to take delivery of 30 million to 50 million barrels of Venezuelan oil. The previous day, President Trump signed an executive order to protect the proceeds from Venezuelan oil sales deposited in U.S. Treasury accounts from seizure or legal action.
Secretary Wright emphasized that the goal is to increase Venezuelan oil production to drive down oil prices, stating, "President Trump is not an ally of the oil and gas industry." Typically, lower oil prices reduce the profitability of oil companies, but President Trump supports expanding Venezuela's oil production, indicating that he stands with consumers who benefit from lower oil prices, rather than the industry itself.
Secretary Wright also dismissed controversy over whether the sale of Citgo shares-an American refinery owned by PDVSA-to hedge fund Elliott, owned by Trump supporter Paul Singer, constituted preferential treatment. He assured, "There was absolutely no favoritism." He explained that the Citgo sale was "an open auction available to all American companies," and added, "We want America's refining assets to be owned by Americans, and we hope to increase processing capacity to lower gasoline prices in the United States."
Meanwhile, President Trump announced on his social media platform Truth Social that the U.S. would protect Venezuela and block any oil or funds being sent from Venezuela to Cuba.
He stated, "Venezuela no longer needs protection from the thugs and extortionists who held them hostage for years," adding, "Venezuela now has the United States, which possesses the most powerful military in the world, as its protector."
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