DOE releases details on U.S. marketing of Venezuelan crude oil

The Department of Energy released a fact sheet on the U.S. plans for “restoring prosperity, safety and security for the United States and Venezuela.” In it, the DOE stated: “The United States government has begun marketing Venezuelan crude oil in the global marketplace for the benefit of the United States, Venezuela, and our allies. We have engaged the world’s leading commodity marketers and key banks to execute and provide financial support for these crude oil and crude products sales. All proceeds from the sale of Venezuelan crude oil and oil products will first settle in U.S. controlled accounts at globally recognized banks to guarantee the legitimacy and integrity of the ultimate distribution of proceeds. These funds will be disbursed for the benefit of the American people and the Venezuelan people at the discretion of the U.S. government. These oil sales begin immediately with the anticipated sale of approximately 30 – 50 million barrels. They will continue indefinitely. The only oil transported in and out of Venezuela will be through legitimate and authorized channels consistent with U.S. law and national security. The United States is selectively rolling back sanctions to enable the transport and sale of Venezuelan crude and oil products to global markets. U.S. diluent (light crude oil) will flow into Venezuela, as required, to mix, upgrade, and optimize the production and transport of Venezuela’s very heavy (high viscosity) crude oil. As part of the significant modernization, expansion, and upgrading required, the U.S. will authorize the import of select oil field equipment, parts, and services to immediately offset decades of production decline and drive near-term growth. This will involve technology, expertise, and investment from American and other international energy partners.” Publicly traded companies in the oilfield services space include Baker Hughes (BKR), Halliburton (HAL), Nabors Industries (NBR), Noble Corp. (NE), SLB (SLB), Transocean (RIG) and Weatherford (WFRD). Publicly traded companies in the oil and gas exploration space include BP (BP), Chevron (CVX), ConocoPhillips (COP), Exxon Mobil (XOM), Shell (SHEL) and TotalEnergies (TTE).