Trump signs executive order meant to protect the money from Venezuelan oil

President Trump has issued a new executive order designed to shield Venezuelan oil revenues from potential seizure through judicial proceedings. The order, made public on Saturday, aims to protect funds that are critical for economic and political stabilization efforts in Venezuela.

The White House stated that allowing these funds to be caught up in legal claims “could undermine critical U.S. efforts to ensure economic and political stability in Venezuela.” The order is grounded in the National Emergencies Act and the International Emergency Economic Powers Act, with Trump declaring that the potential for judicial interference constitutes an “unusual and extraordinary threat” to U.S. interests.

This move comes as major oil industry executives express significant concerns about Venezuela’s investment climate. During a meeting with oil executives on Friday, ExxonMobil CEO Darren Woods bluntly assessed the situation, saying, “If we look at the commercial constructs and frameworks in place today in Venezuela, today it’s uninvestable.”

Venezuela’s history of state asset seizures, ongoing U.S. sanctions, and decades of political uncertainty have created a challenging environment for potential investors. In response to these concerns, Trump sought to reassure oil executives by suggesting they would deal directly with the United States rather than the Venezuelan government.

The administration has made recruiting U.S. oil companies to invest in Venezuela and rebuild its deteriorating infrastructure a key priority following the recent ouster of Venezuelan leader Nicolás Maduro. The White House is framing its approach to Venezuela primarily in economic terms, with Trump taking unprecedented steps to control the country’s oil industry.

These measures include seizing tankers carrying Venezuelan oil and assuming control of sales for 30 to 50 million barrels of previously sanctioned Venezuelan crude. The administration has indicated plans to indefinitely manage Venezuela’s worldwide oil sales, marking an extraordinary level of U.S. involvement in another nation’s primary economic resource.

“I love the Venezuelan people, and am already making Venezuela rich and safe again,” Trump wrote on his social media platform Saturday while staying in southern Florida. “Congratulations and thank you to all of those people who are making this possible!!!”

The executive order explicitly designates the oil revenue as property of Venezuela that is being held by the United States for “governmental and diplomatic purposes” and therefore not subject to private claims. This classification provides legal protection against creditors or other parties that might attempt to access these funds through U.S. courts.

Venezuela possesses the world’s largest proven oil reserves, but its production has collapsed in recent years due to mismanagement, corruption, and underinvestment. Prior to its economic crisis, the oil sector accounted for approximately 95% of Venezuela’s export earnings and was the foundation of its economy.

The U.S. approach represents an unusual level of direct intervention in another country’s economic affairs, though the administration justifies these actions as necessary to stabilize Venezuela and create conditions for economic recovery.

Oil industry analysts note that even with U.S. protection and encouragement, rebuilding Venezuela’s oil infrastructure would require billions of dollars in investment and years of work. The country’s production has fallen from over 3 million barrels per day in the late 1990s to under 700,000 barrels per day in recent years.

International observers continue to monitor the situation closely, as the outcome of U.S. efforts in Venezuela could have significant implications for global oil markets, regional stability, and the future relationship between Washington and Caracas.