The Trump administration has started selling oil taken from Venezuela’s state-run reserves. This move has generated hundreds of millions of dollars and raised concerns among Democrats and some industry observers about how the money is being managed. This scrutiny follows Secretary of State Marco Rubio’s upcoming testimony on U.S. policy toward Venezuela.
The concerns arise weeks after a U.S. military action that removed Venezuelan President Nicolás Maduro from power. This operation transferred control of Venezuelan oil flows to U.S. oversight, a change Rubio has claimed is part of a stabilization effort. Lawmakers will likely challenge Rubio on the decision to channel some oil-sale revenue through accounts outside the United States, including a bank account in Qatar. They will also ask about the legal authority the administration is using to manage these funds.
Trump has stated that the United States is taking Venezuelan oil and processing it through U.S. refineries. In a January 24 interview with the New York Post, he remarked, “Let’s put it this way, they don’t have any oil. We take the oil.” Reuters reported that Trump noted his administration seized oil from seven tankers, with some refined in locations such as Houston.
The first reported sale included about $500 million worth of Venezuelan oil. Revenue from this sale is being kept in U.S.-government-controlled accounts, including one in Qatar, according to Time, which referenced earlier reporting by Semafor. Semafor also noted that Senator Elizabeth Warren stated, “There is no basis in law for a president to set up an offshore account that he controls so that he can sell assets seized by the American military.”
Democrats have characterized this setup as prone to conflicts of interest. Senator Chris Murphy of Connecticut mentioned earlier this month that Trump aimed to control Venezuelan oil for “his friends,” as reported by USA Today and other outlets.
The White House has defended this policy as a move for national security and economic reasons. It aims to redirect oil revenue away from Maduro’s network to advance U.S. goals in Venezuela. White House spokesperson Taylor Rogers said in a statement reported by USA Today, “If not for President Trump’s bold action and courageous leadership, Venezuela would still be controlled by narcoterrorist Maduro and Venezuelan oil would still be enriching our foreign adversaries.”
Rubio has claimed that U.S. control of the funds gives Washington leverage over Venezuela’s interim authorities. In a January 7 interview with a local CBS affiliate, Rubio stated the money would be managed to ensure that it benefits the Venezuelan people, not corruption or the regime.
In addition to the oil revenue, senators have criticized how the administration has conducted briefings and oversight since the operation against Maduro. Reuters reported that Rubio will face bipartisan questioning, including complaints that lawmakers received limited briefings while some oil executives were given advance notice.
The administration’s strategy has also become part of a larger debate on war powers in Congress. Reuters stated Vice President JD Vance cast a tie-breaking vote in the Senate on a measure aimed at limiting presidential war powers related to Venezuela, highlighting the focus on how the White House is handling the period after Maduro.
Rubio is set to testify before the Senate Foreign Relations Committee on January 28. Lawmakers are seeking information about the legal framework for the oil sales, the safeguards for the proceeds, and the administration’s future plans in Venezuela.
