2026-01-08 00:08

LONDON, Jan 8 (Reuters) - President Donald Trump plans to import previously sanctioned Venezuelan oil into the U.S., tearing up the global energy playbook and underscoring the seriousness of the administration’s ambition to dominate the Western Hemisphere. China may be the ultimate target of this “Donroe Doctrine” , opens new tab- Trump's rebranding of a 19th-century doctrine that asserted Washington's zone of influence in the Americas. But U.S. oil companies could become the unintended casualties. Sign up here. Caracas has agreed to export up to $2 billion worth of Venezuelan crude to the U.S., Trump said on Tuesday. This was just days after the U.S. ousted Venezuelan President Nicolas Maduro and began demanding that the Latin American country open up its energy industry to American oil companies – or risk further military intervention. Venezuela will be "turning over" between 30 million and 50 million barrels of sanctioned oil to the U.S., Trump said in a social media post. The deal's time frame has not been disclosed, but the shipments will likely start soon. Energy Secretary Chris Wright said the U.S. needs to control Venezuela's oil sales and revenue indefinitely to drive the changes it wants to see in the country. Trump’s plan will mostly come at the expense of China, which accounted for roughly 400,000 barrels per day of Venezuela's oil exports last year. That is over 50% of total exports, according to Kpler data, and around two-thirds of Venezuela's sanctioned oil exports, according to ROI calculations. By rerouting 50 million barrels of sanctioned Venezuelan oil away from China, the U.S. would thus be seizing the equivalent of around four months of Chinese supplies and roughly 55 days of Venezuela's current production of around 900,000 bpd. On top of this, the Trump administration has reportedly told Venezuela's interim president Delcy Rodriguez to sever economic ties with China. The most significant Chinese-owned oil asset in Venezuela is PetroSinovensa, a major joint venture with the Venezuelan state-owned firm PDVSA and China National Petroleum Corp. The JV operates in the Orinoco belt, producing around 65,000 bpd. Taken together, the Trump administration’s actions in Venezuela appear to be part of a much broader geopolitical strategy. "This is more than redirecting barrels originally headed to China’s refiners. It signals President Trump’s intent to push China, Russia, and Iran out of their deep footholds in Venezuela," Bob McNally, president of consultancy Rapidan Energy Group and a former White House official. 'DONROE DOCTRINE' IN ACTION The developments over this past week are aligned with the National Security Strategy document the White House published late last year. It called for cementing U.S. dominance in the Western Hemisphere by pushing out competitors and restoring American control over energy and supply chains. The so-called "Donroe Doctrine" harkens back to the foreign policy of former U.S. President James Monroe, who in 1823 declared that the Americas were no longer open to future colonisation by European powers. The Trump administration's renewed threats this week to take over Greenland, a self-governing Arctic island that is part of Denmark, are also in line with these ambitions. Trump’s words and actions suggest that investors may want to start taking the White House’s national security strategy more seriously – and literally. Speaking to reporters on Saturday after announcing Maduro's arrest, he said “American dominance in the Western Hemisphere will never be questioned again.” BEIJING BLOWBACK The American actions in Venezuela put U.S. companies, particularly oil firms, in a very tough spot. If a U.S. company such as Exxon Mobil (XOM.N) , opens new tab or Chevron (CVX.N) , opens new tab enters into an agreement with the Venezuelan government to invest in assets previously owned by Chinese or Russian companies, it could face future legal challenges. What’s more, Trump’s unilateral actions could lead to retaliation by China, putting U.S. companies’ foreign assets at risk. U.S. oil majors have numerous operations jointly owned with Chinese firms. For example, Exxon wholly owns and operates a massive petrochemical plant in southern China, which started operations last year following a $10 billion investment. Similarly, Chevron owns stakes in upstream joint ventures in China as well as downstream operations in fuels and lubricants. Both companies also have large liquefied natural gas supply contracts with Chinese buyers. The risk expands beyond China, of course. Host governments in other jurisdictions where American firms operate may be more cautious about working with U.S. companies if they are increasingly viewed as de facto arms of the state. The U.S. president may see little downside in shrugging off international rules and conventions, but American companies could ultimately bear the cost. Want to receive my column in your inbox every Monday and Thursday, along with additional energy insights and links to trending stories? Sign up for my Power Up newsletter here. Enjoying this column? Check out Reuters Open Interest (ROI), , opens new tabyour essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis. Markets are moving faster than ever. ROI , opens new tab can help you keep up. Follow ROI on LinkedIn , opens new tab and X. , opens new tab https://www.reuters.com/markets/commodities/trumps-donroe-doctrine-targets-china-us-oil-firms-could-pay-price-2026-01-08/

2026-01-07 23:11

Expanded license would boost Chevron supply to own refineries Chevron could sell Venezuelan oil to other refiners Washington also wants Exxon, Conoco, Valero involved in Venezuelan oil exports HOUSTON, Jan 7 (Reuters) - Oil producer Chevron (CVX.N) , opens new tab is in talks with the U.S. government to expand a key license to operate in Venezuela so it can increase crude exports to its own refineries and sell to other buyers, four sources close to the negotiations said on Wednesday. The talks come as Washington and Caracas progress in talks to supply up to 50 million barrels of Venezuelan oil to the United States and President Donald Trump presses American oil companies to invest in the South American country's energy sector. Sign up here. U.S. officials have said this week that proceeds from the Venezuelan oil supply, which is expected to help state energy company PDVSA drain inventories amid a severe oil blockade, will go to a U.S.-overseen trustee. Proceeds are meant to finance supplies of American goods to Venezuela. Chevron is the only U.S. oil major operating in Venezuela, which it does under an authorization from the U.S. government that exempts it from sanctions on the country. As part of its sanction-hardening campaign to weaken Venezuelan President Nicolas Maduro, the Trump administration in July put additional restrictions on Chevron's license. Those restrictions reduced the volume of Venezuelan crude the company is exporting to the U.S. to some 100,000 barrels per day (bpd) in December from 250,000 bpd earlier this year. The restrictions also deprived PDVSA of any proceeds from Chevron's exports. The license expansion would allow Chevron to go back to previous export levels while providing Venezuelan crude to business partners that could allocate the cargoes in destinations other than the U.S., as the company used to do in the past. Some of those former business partners, including an Indian refiner, were this week making inquiries in Caracas about the possible resumption of oil loadings in Venezuela, two of the sources said. Washington is also pushing to have other U.S. companies involved in oil exports from Venezuela, including refiner Valero Energy (VLO.N) , opens new tab, which was a customer of state company PDVSA before sanctions, and majors Exxon Mobil (XOM.N) , opens new tab and ConocoPhillips (COP.N) , opens new tab, whose Venezuelan assets were expropriated two decades ago, three separate industry sources said. The possible participation of some of those companies has brought tension to the Caracas-Washington talks, three of the sources said. Chevron, Valero, Exxon and Conoco did not immediately reply to requests for comment. "While we do not comment on specific licenses or licensing requests, the United States Treasury is fully committed to supporting President Trump’s efforts on behalf of the people of Venezuela," a department spokesperson said. PDVSA said on Wednesday it was progressing in negotiations with the U.S. for oil exports to that country under terms similar to those in place for its partner Chevron. "The process (...) is based on strictly commercial transactions under terms that are legal, transparent and beneficial for both parties," it said in a statement, without providing further details. A PDVSA board member separately said the company expects to sell its oil at market prices. The U.S., which on Wednesday boarded and seized two Venezuela-linked tankers in the Atlantic Ocean, has said that an oil embargo on the country remains in force, with cargoes onboard U.S.-sanctioned vessels being targeted. https://www.reuters.com/business/energy/chevron-talks-with-us-government-expanded-venezuela-license-sources-say-2026-01-07/

2026-01-07 23:10

Jan 7 (Reuters) - World Liberty Financial, a crypto venture backed by the family of President Donald Trump, said on Wednesday that its subsidiary has filed an application with U.S. banking regulators to establish a national trust bank focused on stablecoin operations. Several major cryptocurrency firms recently secured preliminary approval from federal banking authorities to establish national trust banks, marking a significant step in integrating digital assets into the regulated banking system. Sign up here. WLTC Holdings filed a "de novo" application to the Office of the Comptroller of the Currency for a bank charter that would issue and custody USD1, a dollar-backed stablecoin that World Liberty launched last year. Crypto platform Anchorage Digital is currently the only digital asset company with a national trust bank charter. The OCC supervises a total of about 60 national trust banks. World Liberty Financial said that USD1 has reached over $3.3 billion in circulation in its first year. The proposed trust bank would offer stablecoin issuance and redemption, and custody services for digital assets. The company said it plans to allow conversion services between U.S. dollars and USD1 without fees at launch. World Liberty said the trust bank would be structured to comply with the recently passed GENIUS Act, which established a federal regulatory framework for stablecoins. The OCC did not immediately respond to a request for comment on the application. https://www.reuters.com/legal/transactional/trump-linked-world-liberty-financial-seeks-license-launch-trust-bank-2026-01-07/

2026-01-07 23:03

WASHINGTON, Jan 7 (Reuters) - The U.S. Justice Department on Wednesday said it was suing two California cities, Morgan Hill and Petaluma, over ordinances banning natural gas infrastructure and appliances in new construction. Sign up here. https://www.reuters.com/business/energy/us-justice-department-sues-two-california-cities-over-natural-gas-bans-2026-01-07/

2026-01-07 23:02

LIMA, Jan 7 (Reuters) - Peru is considering seeking private companies to invest in state-owned oil company Petroperu (PETROBC1.LM) , opens new tab, including in its $5.6 billion Talara refinery, the head of the government's investment promotion agency said in an interview on Wednesday. Luis Del Carpio, head of Proinversion, said cash-strapped Petroperu would also seek private capital for a 1,100-kilometer (684 mi) oil pipeline in the north of the country known as the Norperuano pipeline, which is currently inactive. Sign up here. The government has repeatedly provided financing for Petroperu, reaching about $5.3 billion between 2022 and 2024, and just before the New Year approved an asset reorganization. Del Carpio said that any increase in private ownership of Petroperu would not amount to privatization. "It ... involves identifying a private investor to take over the management of the refinery, for which they will have to inject capital," Del Carpio said. The strained financial situation for Petroperu, one of the largest oil companies in the country, is partly due to debt from the Talara refinery overhaul, which cost double the initial estimate and led the company to lose its investment grade rating in 2022. Petroperu also operates or holds concessions for six crude oil blocks with limited production, and has a fuel distribution and marketing network. Del Carpio said a key goal is to make payments to creditors, which include suppliers of crude oil and bondholders in the international market. A meeting with bondholders is expected to take place in the coming weeks, he noted. https://www.reuters.com/business/energy/peru-weighs-bringing-private-investors-cash-strapped-petroperu-2026-01-07/

2026-01-07 22:14

WASHINGTON, Jan 7 (Reuters) - A global environmental activist working on an effort to coordinate a global treaty to phase out fossil fuels was detained and released by Indian authorities as part of their probe into the use of foreign funds to undermine Indian energy policies, Indian officials said on Wednesday. India’s Enforcement Directorate searched the home of Harjeet Singh and his wife Jyoti Awasthi, who run environmental NGO Satat Sampada (Nature Forever), as part of its investigation into "suspicious foreign inward remittances" received by the organization to promote the so-called Fossil Fuel Non-Proliferation Treaty within India, it said in a statement. Sign up here. The treaty, first proposed in 2022 by Pacific island nation Vanuatu, seeks to stop the production of fossil fuels and usher in a transition toward green energy. It is backed by 18 developing countries, including Colombia and Pakistan. The probe comes after the conclusion of COP30 climate summit in Belem, Brazil, where several countries objected to a final outcome that avoided stronger plans for reining in greenhouse gases or phasing out fossil fuels. "While presented as a climate initiative, its adoption could expose India to legal challenges in international fora like the International Court of Justice and severely compromise the nation's energy security and economic development," the Indian agency said in a statement. The ICJ issued an advisory opinion last July that said wealthy nations have a responsibility to curb climate change. Singh and Awasthi were not immediately available for comment. Tzeporah Berman, founder and chair of the Fossil Fuel Non-Proliferation Treaty Initiative, could not comment on details of the probe but said in a statement that the treaty aims to support, not undermine India. "The proposal intends to support developing countries — including India — through international cooperation, economic diversification, access to finance, and technology transfer. Our purpose is to advance fair and orderly transitions to renewable and accessible energy systems, with a particular focus on those most in need," she said. https://www.reuters.com/sustainability/cop/india-arrests-environmental-activist-anti-fossil-fuel-work-2026-01-07/