U.S. President Donald Trump announced Thursday that 50 million barrels of oil are en route to the city of Houston, describing the situation as “fantastic” for Venezuela.
Oil Shipments and Policy Changes
“We are taking 50 million barrels of oil. They are floating right now and on very large ships to Houston,” Trump stated during a Republican rally at an industrial plant in Georgia. He also commented that the president of Venezuela “is doing a great job,” without directly naming the leader.
Trump’s comments followed a discussion of domestic economic issues and the upcoming November 3rd midterm elections. The recent licenses authorize five major companies – Chevron, BP, Eni, Shell and Repsol – to engage in transactions related to hydrocarbons with the state-owned Petróleos de Venezuela (PDVSA) and other public entities.
Conditions for Oil Exports
The permission requires that contracts be governed by U.S. Jurisdiction and that payments to individuals sanctioned by the OFAC be channeled to accounts designated by the Treasury. This change in policy allows for the export of crude oil under strict conditions of supervision and reporting.
Frequently Asked Questions
What did President Trump announce?
President Trump announced that 50 million barrels of oil are currently being shipped to Houston.
Which companies are authorized to conduct transactions with Venezuela?
Chevron, BP, Eni, Shell, and Repsol are authorized to conduct transactions related to hydrocarbons with Petróleos de Venezuela (PDVSA) and other public entities.
What are the conditions of the new licenses?
Contracts must be governed by U.S. Jurisdiction, and payments to sanctioned individuals must be channeled through accounts designated by the Treasury.
As the oil shipments proceed, what impact might this have on the relationship between the U.S. And Venezuela?
