US Energy Secretary Chris Wright announced that Gulf Coast refiners have room to process more Venezuelan heavy crude oil, a statement that underscores just how dramatically the landscape of Venezuelan energy exports has shifted in the past year and a half.

Speaking at an event in Port Houston on June 12, Wright framed the opportunity as a gradual one, noting that demand is expected to rise steadily rather than in a single spike. For refineries that were literally built to handle Venezuela’s thick, sulfur-heavy crude, this is less of a pivot and more of a homecoming.

Venezuela’s oil production is back from the dead

Venezuela’s output hit 1.031 million barrels per day in April 2026, then climbed further to 1.179 million bpd in May. That recovery was driven by eased sanctions and new licenses granted to foreign operators, most notably Chevron, which remains the largest US producer operating in the country.

Gulf Coast refineries were specifically designed decades ago to process the kind of heavy sour crude that Venezuela exports. When Venezuelan supply dried up, those refineries had to source similar grades from places like Canada, Mexico, and the Middle East. Wright’s comments suggest the US government sees an opportunity to redirect more of that crude back to its original destination.

How the US ended up controlling Venezuelan oil sales

Following the capture of Nicolás Maduro in January 2026, the US effectively assumed control over Venezuelan oil sales. Proceeds from those sales are being directed into government-controlled accounts, and Washington has been using selective sanctions relief as a carrot to encourage foreign investment in the country’s battered energy sector.

As of mid-April 2026, Venezuelan oil sales under US control had already exceeded $1 billion, with additional deals expected in the near term. Chevron has been the primary beneficiary of this new arrangement, expanding its operations in Venezuela following new agreements designed to attract foreign capital.

What this means for energy markets and investors

For Gulf Coast refiners, increased access to Venezuelan heavy crude could improve margins. These facilities operate most efficiently when running the exact type of oil they were designed to process. Substituting lighter or sweeter crudes, while workable, typically means suboptimal yields.

The gradual nature of the demand increase Wright described matters. A sudden flood of Venezuelan crude hitting the market could depress prices, but a measured ramp-up allows supply and demand to stay roughly in balance.

US control over Venezuelan oil sales is unprecedented in modern energy markets. Any shift in US policy, whether driven by a change in administration, congressional action, or developments on the ground in Venezuela, could alter the supply picture quickly. The $1 billion already generated from US-controlled sales demonstrates the economic significance of the arrangement.