Venezuela's 150 Million Barrels of Oil Shipped Away! Trump Claims: Already Earned Over $13 Billion
Trump responded to criticism aboard Air Force One, boldly stating that the US military's takeover of Venezuela's oil exports has not only "recouped costs several times over" but also generated substantial revenue. However, the US government remains tight-lipped about the destination of these funds.
Following the takeover of Venezuela's oil exports on January 3rd, the Trump administration's handling of revenue from crude oil sales has become a new focal point of controversy within the US.
While flying on Air Force One to Michigan to inspect a General Motors facility this Monday, Trump stated that the US has received "more than $13 billion" from selling Venezuelan crude oil. His comments were a response to a report by the Financial Times. Trump told reporters, "Getting $13 billion from Venezuela? I think it's more than that." He added, "We've recouped the cost of that war several times over," and claimed the US is "taking in a lot of money—hundreds of billions from Venezuela," which is being used to keep the country running.
The $13 Billion Controversy: Trump Claims "Recouped Costs Several Times," Government Statements Inconsistent
According to calculations by the Financial Times, the Trump administration has generated over $13 billion in revenue from Venezuelan oil sales this year, but has been "almost silent" on where the money is going. The report noted that after the US forcibly removed Maduro and installed then-Vice President Delcy Rodríguez as leader in January, the US took control of Venezuela's oil exports and suspended some sanctions. The Financial Times cited estimates that the oil revenue acquired by the US accounts for about a quarter of Venezuela's GDP (Gross Domestic Product). The lifting of sanctions was originally expected to significantly boost the economy, but even before last month's devastating earthquake, Venezuela's economy was already in crisis.
Six months after the US took control of these funds, economists generally believe signs of economic recovery in Venezuela remain weak, suggesting the US may not be repatriating all additional oil revenue to Venezuela. Correspondingly, Washington's statements on the nature and use of these funds have shown significant discrepancies. An executive order signed by Trump on January 9th stated that the money is property of the Venezuelan government, held in trust by the US. An earlier executive order from January said the funds would be held in a US government account under "trust and government authority." However, shortly after the January raid, Trump himself stated that the revenue "will be controlled by me." By June, he claimed the US had recouped the cost of its military operations in Venezuela "28 times" through this oil, adding that the US had also "made a lot of money." Trump also said at the time, "We won that war in just 48 minutes. We shipped out millions of barrels of oil." The US Department of Energy has stated that the funds "will be disbursed for the benefit of the American people and the people of Venezuela."
Where Did the Money Go?
Regarding the flow of funds, the US government has disclosed some details, but overall transparency remains lacking. US Energy Secretary Chris Wright revealed in an April interview with Semafor that the US has sold approximately 150 million barrels of Venezuelan oil since January. Wright also stated in February that the Trump administration initially deposited $500 million from oil sales into a Qatari account controlled by the US government, later establishing a Treasury account and ceasing to transfer funds to the Qatari account. Secretary of State Marco Rubio testified before Congress in June that these oil sales are audited by KPMG, with funds held in a Citibank account. Rubio emphasized, "This is a continuous audit, so it's not once a year, but every single expenditure, every single disbursement is audited by KPMG." He also stated that disbursements are made according to Trump's January 9th executive order.
Senior State Department official Michael Kozak told Congress in April that approximately $3 billion has been disbursed from the Treasury account. According to him, this money has been used to pay Venezuelan government salaries, purchase supplies for the country's oil industry, and for other approved purposes. During a congressional hearing last Wednesday, Kozak again explained the US method of controlling the funds. He said, "It's their money, but... they have to get our permission." He added that funds have been disbursed for salaries and oil industry equipment. The State Department stated in a release that under this system, "billions of dollars have been injected into the Venezuelan economy." The statement added, "Financial monitoring is ongoing to ensure funds benefit the Venezuelan people." A Treasury official added that as trustee, the US government has worked with the Rodríguez administration since January to quickly disburse funds for official government expenditures, including salaries for government employees, and to ensure liquidity in the Venezuelan system.
US officials also indicated that control over oil funds is used to exert influence on Rodríguez, the interim president who was a key member of the Chávez regime and now partly governs according to Washington's directives.
Congressional Inquiries and Post-Earthquake Pressure: Transparency Dispute Intensifies
Lawmakers from both parties are demanding the government clarify the final destination of the funds, the oversight mechanisms, and how to prevent corruption in distribution. Democratic lawmakers have consistently pressured the government to disclose exactly how much revenue has been collected from crude oil sales, how the funds are used, and who oversees the program. According to the Financial Times, prominent Democrat Joaquin Castro said, "Trump's military intervention in Venezuela was from the start riddled with calculations about oil, power, and corruption. The Trump administration controls billions in Venezuelan oil revenue without transparency or safeguards." He added that Congress has been "kept in the dark." Republican Representative Maria Elvira Salazar from South Florida also called for the release of related reports during a Tuesday hearing, stating, "Transparency about where the money is going is absolutely critical." Democrats on the House Foreign Affairs Committee said Kozak promised quarterly reports, but they have received no subsequent information since April.
The Financial Times' estimate of $13 billion is based on data from freight and analytics platform Kpler on Venezuelan crude shipments since January, combined with price estimates from pricing agency Argus for Merey extra-heavy crude and two less common Venezuelan grades, Boscan and Hamaca. The publication noted that these price data do not cover all oil types and only begin recording from February. According to the Financial Times' calculations, the value of crude shipped since January with direct price estimates is approximately $11.5 billion; based on historical price trends, the unpriced portion is expected to push the total over $13 billion. The Venezuelan government has set up a dedicated website to track US-led oil sales revenue, but currently, it only shows one record: a $300 million transfer in March.
Deepening Controversy
The controversy over the oil funds is also deepening economically. Francisco Rodríguez, a Venezuelan economist at the Washington-based Center for Economic and Policy Research, stated that the country's official growth rate of 2.5% in the first quarter is the lowest in nearly five years. He analyzed, "Although oil revenue increased in the first quarter, the reason Venezuela's economy hasn't achieved faster growth is likely because the US hasn't transferred all the increased oil revenue to the Venezuelan government." Venezuelan economist and former opposition lawmaker José Guerra also stated that oil revenue should be much higher than in recent years, questioning, "Where is the money? There's zero transparency, and the US government isn't informing us." Alejandro Grisanti, head of Venezuela-focused consulting firm Ecoanalítica, pointed to signs of a significant influx of dollars in the past two months. He had expected the Venezuelan economy to accelerate growth in the fourth quarter of this year but stated that last month's earthquake will likely delay this process.
The devastating earthquakes on June 24th have made the fate of these funds even more urgent. The UN estimates damage to buildings and infrastructure alone at $37 billion. Since the earthquakes, Rodríguez has been seeking to access funds held overseas, including holdings at the International Monetary Fund (IMF) and Venezuelan gold held by the Bank of England pending a court decision. The US has provided $386 million in disaster relief and deployed hundreds of soldiers to Venezuela for rescue operations. US Chargé d'Affaires to Venezuela John Barrett stated this month that funds from the oil revenue account have also been "earmarked for this specific reconstruction effort," without specifying the amount. Benjamin Gedan, a former senior White House official for Latin America during the Obama administration, said that if Democrats win control of one or both houses of Congress in November, Venezuela's oil funds could become a major target of investigation. He said, "It could be a very attractive target for investigation. You can imagine a flood of subpoenas and requests for testimony regarding the distribution of Venezuelan oil funds." According to US officials, the current estimate of oil revenue does not include mining export earnings, some of which are also being collected by the US government.