Trump plans to use Venezuela's huge crude reserves 'to cut US oil price to $50 a barrel'

[BumRushDaShow]

Source: The Guardian

Thu 8 Jan 2026 07.00 EST
First published on Thu 8 Jan 2026 06.07 EST


Donald Trump plans to use Venezuela’s vast crude reserves to establish control of most of the western hemisphere’s oil in an attempt to drive the market price down to about $50 (£37) a barrel, according to reports.

The US president has repeatedly raised the prospect of producing enough crude from Venezuela’s oilfields to drive down the US oil price from more than $56 a barrel today to about $50 in an effort to cut energy costs for consumers, according to the Wall Street Journal, which cited senior Trump administration officials.

Global oil markets have already recorded significant losses in recent years due to an oversupply of crude. Prices slumped by almost 20% in 2025, marking the biggest annual loss since the Covid-19 pandemic and the first time the oil market has recorded three consecutive years of annual losses.

As well as driving market prices lower, officials reportedly claimed Trump’s plans to control Venezuela’s oil reserves, which are the largest in the world, include cutting Russia and China’s access to the South American country in order to establish a western hemisphere oil production stronghold.

Read more: https://www.theguardian.com/business/2026/jan/08/trump-plans-use-venezuela-huge-oil-reserves-to-cut-us-consumer-price-to-50-a-barrel

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From the article -

[jls4561]

1. Right after he sends out those $2 K tariff checks...in about two weeks.

[walkingman]

2. Good, maybe some of the oil belt will go broke and the fossil fuel supporters will lose their jobs.

[moonshinegnomie]

3. at $50 a barrel most Oil drilling is not feasible

especially in venezuela which produces a heavy thick tar like crude.

[ToxMarz]

8. Right, they'll just leave it in the ground until the price goes back up

which it will because there is no production. They're not going to produce at a loss, nothing is better than a negative something. I bet Wharton cringes everytime he touts is education came from there.

[Jack Valentino]

45. THIS! Getting too near or even below the 'break-even point'.

The cost of production will be more than the price....

Would be good for consumers in the short-run, but they could well end up paying more when all the producers cut production...

[A Badger]

59. The 'Orinoco crude'

...is labeled as "bituminous". Only slightly less viscous than Canada's Athabascan 'Tar sands' stuff.

Overheard on the Internet:
"...So when you hear that Venezuela has “the world’s largest oil reserves,” the technically accurate part is that the country has extremely large volumes of extra-heavy oil in place, and a big subset of that was once judged economically recoverable at high price assumptions and booked as 'proved'. The more relevant questions for energy strategy are how many of those barrels are genuinely economic under realistic long-term prices, how quickly they can be brought onstream given infrastructure and institutional constraints, what netback they deliver at the refinery gate, and how exposed they are to being left in the ground if demand peaks. On those metrics, Venezuelan barrels sit much further out on the cost and risk curve than the headline “largest reserves” soundbite suggests."

I.e.,- at $50/barrel, the US oil majors wouldn't invest a dime, and would leave the Venezuelan 'stranded''.

[C_U_L8R]

4. Trump don't math so good

No wonder he's gone bankrupt so many times.

[popsdenver]

21. Like his claim that

he will cut drug prices 200,400, 1600% Anything over 100% and that is the amount the Drug Manufacturer will pay the consumer to use their drug...........LOL

The Wharton? School of Business should be ashamed.........The school (and all his professors) obviously allowed Trumps father to BUY his degree.....
Makes you wonder how many Rich kids graduate with degrees that were literally BOUGHT, not only from This school, but other high ranking institutions across America......

Wasn't it WBush that went to Harvard and graduated that way, but they didn't dare let him go to their law school knowing the Law school professors wouldn't just pass him because of who he was???????? Or maybe it was allowing him in to get his MBA???
I will have to check on that and delete this if I am 'Mis-Remembering" LOL
****I checked and it was Yale that gave him an undergraduate degree, but wouldn't admit him to their law school, but Dartmouth admitted them to THEIR law school.....I wonder if he ever was able to pass the BAR ???????????

[ruet]

5. Hey Everybody!

Remember when the US oil industry, pretty much, stopped drilling for oil because the price was so low? How TF are they, supposedly, going along with this?

[SergeStorms]

54. I remember.

Of course I'm so old I remember Hitler bombing Pearl Harbor.

[bluestarone]

6. Well, it is SAD that some Americans vote because of the price of eggs (TSF knows that now) so he's thinking, hey

between now and NOV. i'll get that gas price down, then these ddumb ASS's will vote for my republicans again. MANY will ofcourse.

[mjvpi]

7. Maybe he can crash the Russian economy by flooding the oil market.

Leverage to get Russia to negotiate peace with Ukraine. One can dream.

[BumRushDaShow]

12. Saudi and Russia sort of did that to themselves back in 2020

when they did a "production war" and crashed the price of oil as far down as ~$38.50/bbl (meaning they were willing to pay to store it)!

Saudis Plan Big Oil Output Hike, Beginning All-Out Price War

Crude Oil has gone NEGATIVE!

[Callie1979]

34. I was shocked he allowed that tanker seizure. SHOCKED I tell you.

Putin had sent a sub to protect it but the Navy beat it

[Buddyzbuddy]

9. Wouldn't that piss off our oil executives and Pootie?

Sounds like a job for TACO MAN!

[underpants]

10. Oil Executives "you want us to crush our own industry?"

[Buddyzbuddy]

13. I'm confused by your implication.

I merely stated an observation and probable conclusion. I didn't advocate for anything.

[Miguelito Loveless]

16. I don't think he was implying anything

but pointing out rhetorically that $50/b oil would decimate the US oil industry.

[Buddyzbuddy]

18. That was my obvious observation and the result would be the Felon reversing course.

Hence, taco man.

[underpants]

19. I was backing up what you posted

[Buddyzbuddy]

24. Thank you, I misunderstood.

Must have misread. It must be me, today.

[SergeStorms]

55. Everyone is having a bad day.

But then I think about Ms. Good's family and friends.....then I stop the self-pity. It can always get worse. 😳

[Ol Janx Spirit]

11. What he is saying sounds a lot more like socialism than capitalism....

Capitalism does not want oil to be that cheap as there is no profit in it. If it did we could already have even cheaper oil. OPEC has used their collective power to make sure the price of oil stays where it is profitable for them by increasing or decreasing supply.

Venezuela is a founding and current member of OPEC, but I guess that will change now?

So, is he saying that the government is going to control both the natural resources and the means of production in order to push oil down to $50 a barrel?

[Callie1979]

36. Socialism is GOOD if it benefits trump. nt

[Ol Janx Spirit]

37. Gore Vidal called it "free enterprise for the poor and socialism for the rich."

I guess that is more accurate.

[riversedge]

14. Only one big problem!!: Venezuela oil does NOT belong to the U.S.

[Ol Janx Spirit]

38. "Possession is eleven points in the law, and they say they are but twelve"

That's basically what Stephen Miller said on Tuesday.

And apparently there is some truth to it.

And when you're a superpower, they let you do it. You can do anything.... Grab 'em by the oil....

[Miguelito Loveless]

15. If memory serves, most fracked oil

needs the price to be around $70, or they shut down the well.

[BumRushDaShow]

23. The "breakeven" price

DALLAS FED BREAKEVENS (2025)- https://www.dallasfed.org/research/energy/indicators/2025/en2504



(fracking would be higher)

[Miguelito Loveless]

26. Thanks for the chart

[BumRushDaShow]

31. Most welcome!

For some odd reason, I follow this.

[Ray Bruns]

17. No wonder he bankrupted casinos.

[MiHale]

20. Venezuela's oil, it's nasty...

https://www.huffpost.com/entry/nasty-venezuelan-oil-trump_n_695edbc9e4b05f1e1aab74b1

Oil from Venezuela, which Trump keeps claiming is now under his control, is a heavy sludge-like product filled with hydrogen sulfide and a slew of toxic metals that can destroy a refinery if not first removed, industry experts said. It must be diluted with imported petroleum products before it is even fluid enough to move, and its corrosiveness is the reason that much of the country’s oil drilling equipment is in such a state of disrepair.

“That’s why the infrastructure has rotted away,” said Matt Randolph, an oil industry executive with decades of experience. “It’s extremely corrosive and all of the equipment needs constant maintenance and chemical treatment to keep it from degrading.”
The higher expense involved in processing Venezuelan oil, combined with current low oil prices globally and an uncertain oil demand in the future, means that the U.S. installation of a more cooperative ruler in that country may end up having no effect on what Americans pay for gasoline and heating oil.
An oil industry analyst, who spoke on condition of anonymity, said production could – with relatively little cost – ramp up from the current 1 million barrels a day being extracted in Venezuela by about 200,000 more barrels. Beyond that, though, will require massive new investments that might never pay off if oil prices remain low.

….more at link….

[eppur_se_muova]

22. Please consider making this a separate post -- and maybe xpost in Environment/Energy !

I'd heard it was high-sulfur oil, but not that bad !

[MiHale]

25. Done ...

[eppur_se_muova]

30. thanks!

[lonely bird]

33. Much of the U.S. gulf of MEXICO refineries can process heavy, sour crude

https://cleantechnica.com/2026/01/06/why-venezuelas-oil-wont-matter-and-why-heavy-crude-is-first-off-the-market/#:~:text=Venezuela%20is%20often%20described%20as,imports%2C%20and%20more%20complex%20processing.

It isn’t going to help oil prices at all.

[niyad]

46. Boscan crude is, apparently, basically a rock under all but the most

optimum conditions.

[markodochartaigh]

27. Step 1: Drive oil prices to $50/BBL.

Step 2: Bail out oil companies with billions of US government dollars.

Step 3: Listen to outraged Republicans go ballistic over spiraling US debt.

(Spoiler alert: Step 3 never happens.)

[BumRushDaShow]

32. "Step 3: Listen to outraged Republicans go ballistic over spiraling US debt."

Step 4: WE GOTTA CUT MORE "ENTITLEMENT PROGRAMS" (that are not really "entitlement programs" )!! !!111!!!1!!

[Justice matters.]

56. Step 3 only happens when a Dem is president and...

Dems in Congress have majorities (except for the anti-democratic filibuster in the Senate).

[Coldwater]

28. Next week's New Yorker

cover has trump drinking crude oil out of a barrel

[BumRushDaShow]

41. Here -

[truthisfreedom]

29. It's so weird that so much of our oil

is hidden under other countries. Someday we’ll have to solve that mystery. I’m sure it’s as complex as quantum physics.

[intrepidity]

58. Right?

Not to mention all of our stuff buried under Greenland!

[flashman13]

35. The economic moron stricks again. American producers will go bust on $50/barrel oil.

[utherpendragon]

39. but what about the relief

Once the price of oil goes down, then the price of everything else will go down, don't you see? So, we are the big winners. Do I have that right?

[NickB79]

40. $50 oil would destroy the economies of Texas and North Dakota

They can't make a profit unless oil is at least $55-$65/barrel.

Ironically, both states voted for Trump.

[Nigrum Cattus]

42. everything he says is a lie

$50 a barrel oil won't matter when we have a country
of poor people who can't afford to feed themselves.
stupid, stupid, stupid
epstein, epstein, epstein

[BidenRocks]

43. It was not long ago

when chump canceled the Offshore Wind and Solar projects.

He is forcing the issue against electric vehicles. If they were available here, I would look at a BYD!

Sorry GM. You were here in early 70s.
You are writing off electric to please chump.
No leadership there.

[Tetrachloride]

44. the price is not trump's goal. its headlines

[orangecrush]

47. Quiet, Piggy

[C Moon]

48. Everything he gets his tiny hands into, falls flat.

I’m sure Venezuela will be the same.

[IronLionZion]

49. American oil companies have said they don't want Venezuela's oil

because it's too high cost so they would lose money. It would take billions in investment to rebuild Venezuela's oil infrastructure. And then if he lowers the price they lose profits. So oil companies are not going to gain from this plan.



Venezuela, Russia, and most oil producing nations and oil companies all profit from higher oil prices. They don't want lower prices.

[sakabatou]

50. Dump making more shit up to destroy the economy

[SalamanderSleeps]

51. Stand down everyone.

Monkeys just started to fly out my ass.

[AverageOldGuy]

52. BFD

One barrel of crude = 42 gallons

About 40% of a barrel becomes gasoline, which means a barrel of oil will yield 16.8 gallons of gas.

If a barrel cost $50 and yields only 16.8 gallons of gas, that means the gas will cost $2.98 a gallon to produce.

Add to the $2.68 transport, taxes, profit margin, etc., then gas will remain at or near $3.00 per gallon.

But try to explain this to MAGAts who failed 6th grade math.

[SergeStorms]

53. Why, will hardly notice the military mowing us down.....

with all that cheap gas!

[hay rick]

57. Trump talks to make himself feel good. Sometimes, like here, the word salad includes a number salad.

[artemisia1]

60. "Mexico will build the wall and pay for it...". More lies from Trump who likes to suggest his stealing will benefit

Americans.

[OldBaldy1701E]

61. No, he is gong to use it to enrich himself and pay for that ballroom. (n/t)