Venezuela Signs US Oil Deals as Half Its Crude Heads North
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Venezuelan hydrocarbons minister Paula Henao announced new energy agreements with US-based firms Hunt Oil and SLB, involving production contracts for onshore fields and reservoir studies. Concurrently, a US energy official stated that over 500,000 barrels of Venezuelan crude per day—roughly half of the country's total output of 1.25 million barrels—are currently being exported to American refineries. While the Central Bank of Venezuela reported a 7.14 percent year-on-year economic growth for the second quarter of 2025, these figures remain unverifiable by independent sources. The resumed oil trade follows the issuance of US sanctions licenses, leveraging the specific refining capacity of the US Gulf Coast for heavy Venezuelan crude.
Consequences
The concentration of half of Venezuela's national oil output toward a single buyer leaves the country's economy significantly exposed to future shifts in US licensing policy. While the government credits both oil and non-oil sectors for recent economic growth, the lack of independent verification limits the reliability of these metrics as indicators of long-term stability.
Sources
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