Trump admin turns Venezuela into major US oil supplier as global shipping crisis eases

The Trump administration has turned Venezuela into a significant U.S. oil supplier, Interior Secretary Doug Burgum said Sunday, arguing the shift will help offset Middle East disruptions and ease pressure from the global shipping crisis.

"[Venezuela] was a sanctioned adversary, and now they're a strategic ally with the largest reserves with no threat of the chokehold like we have in the Strait of Hormuz," Burgum told "The Sunday Briefing."

"Venezuelan oil can flow to America freely and is starting to flow, will continue to flow, and these are the kinds of things that are going to bring gas prices down in America, because President Trump understands that energy security means national security and energy security also means affordability for Americans," he said. 

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Burgum's comments align with recent moves to expanding Venezuelan crude exports to the United States, with Venezuela's state oil company Petróleos de Venezuela S.A. signing new contracts last week to supply crude oil and refined products to U.S. Gulf Coast refineries.

The agreements are part of a broader effort to re-establish commercial ties and bring Venezuelan oil back into major U.S. supply chains.

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At the same time, Burgum said rising prices will trigger a domestic response.

"When you see prices start moving up like this, [the] American private sector is very responsive and there's going to be more active drilling in America right now in response to prices going up," he said.

"There's a price signal. But again, remember, under Biden, there were 67 days in a row where prices were over $100. There's never been a day so far under President Trump where they've gone above $100," he said. "And this is a temporary issue. This is not about lack of oil in the world. This is about a transit issue."