Rubio Defends US Oversight of Venezuelan Oil in Tense Senate Hearing

WASHINGTON — US Secretary of State Marco Rubio faced sharp questions from senators on Wednesday during a Senate Foreign Relations Committee hearing. He defended the Trump administration's plans to oversee sales of Venezuelan oil. This comes after a US military operation earlier this month that led to the capture of former Venezuelan President Nicolas Maduro. The goal is to use oil money to bring stability to the country while preventing misuse of funds.

Rubio said the US will allow Venezuela to sell oil that has been under sanctions. The money from those sales will go toward basic needs like policing and health care. Washington will watch over the process to make sure the funds help the people.

Background

Venezuela holds the world's largest proven reserves of crude oil. For years, its oil industry has been hit hard by US sanctions aimed at pressuring the government of Nicolas Maduro. Those sanctions blocked sales and limited how the country could use its oil money. Maduro's rule saw widespread economic problems, including shortages of food and medicine. Corruption in the oil sector sent much of the revenue to officials and foreign buyers like China at low prices.

This month, US forces carried out a raid that captured Maduro. He is now in US custody. An interim government has taken over in Venezuela, led by figures like Delcy Rodriguez. The US does not see this as a full takeover but as a step toward a proper transition. President Trump has said the US will guide the country until new leadership is in place. He wants American oil companies to step in and fix the broken infrastructure.

The shift started right after Maduro's arrest. The administration moved fast to handle the oil. On January 6, Trump announced that Venezuela's interim leaders would hand over 30 to 50 million barrels of sanctioned oil to the US. A week later, the first sale happened. It was worth $500 million. More deals are in the works. The money goes into accounts controlled by the US, including one in Qatar to avoid legal claims from creditors.

On January 9, Trump signed Executive Order 14373. This order puts Venezuelan oil revenue under US government protection. It stops any transfers or dealings with the funds unless approved. The White House says this protects the money for the good of Americans and Venezuelans. The Department of Energy put out a fact sheet on January 7. It talks about rolling back some sanctions to let oil move to global markets. This includes allowing US diluent — a key mixer for heavy Venezuelan crude — and equipment for oil fields.

Venezuela's interim leaders have their own plans. Acting leader Delcy Rodriguez said oil sales revenue would go into two funds. One for health services, the other for public works like the power grid. Lawmakers there started talks last week on energy law changes to draw foreign investment.

Key Details

Rubio gave specifics on how the oil sales will work. Venezuela can market the sanctioned oil. But the revenue lands in a US-monitored account. The Treasury Department handles it all. Interim leaders must submit a monthly budget. They list needs like police pay or medical supplies. The US gives guidance on what counts as allowed spending. Audits will check compliance.

Oil Sales and Funds

The first sale brought in $500 million. It went to a US-controlled bank. Hundreds of millions more have been set aside. Another $3 billion is expected soon. Rubio stressed this is temporary. The US won't pay for new oil investments. Big American oil firms may later spend billions to rebuild pipelines and rigs. But for now, it's about selling what's there to avoid collapse.

"The revenue from those oil sales will be deposited into an account that we will monitor," Rubio said. "This is merely a method to allocate revenue to prevent systemic collapse while we navigate through this recovery and transition."

Democrats and some Republicans pushed back. Senator Chris Murphy from Connecticut called it taking oil at gunpoint. He worried it favors Trump-linked companies and won't work for 30 million Venezuelans.

"You are taking their oil at gunpoint; you are controlling and selling that oil… you are determining how and for what purposes that money will be used in a nation of 30 million people," Murphy said. "Many of us believe that this approach is destined to fail."

Rubio countered that under Maduro, the oil mostly helped crooks and cut-rate buyers. Now, interim leaders are helping seize illegal shipments.

The setup uses a fund in Qatar at first. This dodges US court claims since the US doesn't recognize Maduro's government. Funds stay blocked under sanctions until cleared for use.

What This Means

The US role gives it big use over Venezuela's future. Oil makes up most of the country's income. Controlling the sales lets Washington shape spending and push for changes. It aims to cut off old corrupt networks and foreign influence from places like China.

For Venezuelans, this could mean steadier basics like hospitals and security. But it depends on the oversight working without delays. Interim leaders must follow US rules to get the cash. Rodriguez's team has not commented on Rubio's remarks yet.

Globally, more Venezuelan oil on markets could ease prices. US firms stand to gain from rebuilding work. The Department of Energy has talked to big traders and banks to make sales happen at market rates.

Lawmakers want more say. The executive order calls for reports to Congress. Energy companies watch for licenses on dealings. Sanctions stay in place otherwise, so businesses must stay careful.

Trump's team sees this as protecting the region from drugs and bad actors. White House spokesperson Taylor Rogers called it a historic deal. She said it opens doors for investments to fix oil fields.

The hearing showed divides. Rubio stuck to his points on legality and plans. He said past oil money never reached people. Now, it will under watch. Senators want guarantees of fairness. The path ahead involves monthly checks, audits, and talks on transition.

Venezuela's energy reform push fits with US goals. It could bring private money if stable. But questions linger on how long US control lasts and who decides when Venezuela is ready for full access.