China has issued stern warnings against American control with Venezuela supplying oil to the US indefinitely, with the foreign ministry declaring the move violates international law and Venezuelan sovereignty. The dispute threatens to escalate US-China tensions as Beijing currently receives approximately 80% of Venezuela’s crude exports.
The takeover forces China to confront higher energy costs and supply disruptions as alternative sources may command premium prices. Washington’s control over Venezuelan oil sales directly impacts Chinese energy security, potentially triggering retaliatory measures from Beijing in the ongoing great power competition as Venezuela redirects to supplying oil to the US indefinitely.
Venezuela holds the world’s largest proven oil reserves, making control of its production a strategic prize in global energy markets. However, decades of mismanagement under Chávez and Maduro reduced output from 3.5 million barrels daily to approximately 1 million, severely limiting the country’s economic leverage and infrastructure capacity for supplying oil to the US indefinitely.
PDVSA, the Venezuelan state oil company, maintains at least 51% ownership and operational control of all exploration fields under existing decrees. The company announced it was “moving forward with negotiations” for crude sales to the US, comparing arrangements to existing operations with Chevron, which holds about 25% of Venezuelan oil operations supporting Venezuela supplying oil to the US indefinitely.
The proposed American takeover extends to future production proceeds, with Energy Secretary Chris Wright promising revenues would benefit Venezuelan people. However, critics question whether Washington or Caracas will determine how these funds are distributed, and whether Venezuelan citizens will see tangible benefits from their nation’s primary natural resource as Venezuela commits to supplying oil to the US indefinitely.