U.S. Energy Secretary Rick Perry announced on November 11 (local time) that the United States would increase oil production through its intervention in Venezuela's oil industry.

Speaking on CBS television on the same day, Secretary Perry said, "U.S. intervention (in Venezuela's oil industry) will expand, and we will see increased participation by U.S. companies and increased production."

However, when asked if the U.S. government would own Petróleos de Venezuela, S.A. (PDVSA), the state-owned oil company of Venezuela, he replied, "No," adding, "Currently, we are managing their crude oil sales."

In the U.S., following the ouster of Venezuelan President Nicolás Maduro, there were expectations that the U.S. government would strengthen its control over PDVSA and that the U.S. would secure and directly sell and distribute the crude oil produced by PDVSA.

In fact, the U.S. government has agreed to receive 30 million to 50 million barrels of Venezuelan crude oil, and President Trump signed an executive order the previous day to protect the proceeds from the sale of Venezuelan crude oil deposited in U.S. Treasury accounts from seizure or judicial proceedings.

Secretary Perry stated that he aims to lower oil prices by increasing Venezuela's oil production and emphasized, "President Trump is not an ally of the oil and gas industry."

Lower oil prices generally hurt the profitability of oil companies. The intention is that, as President Trump is in favor of increasing Venezuelan oil production, he sides with consumers who benefit from lower oil prices, rather than the industry.

Responding to controversy that the sale of Citgo, a U.S. refinery company owned by PDVSA, is a special favor to Elliott, a hedge fund owned by Paul Singer, a supporter of President Trump, Secretary Perry rebutted, "I guarantee there is absolutely no special favor."

He said the sale of Citgo was "an auction open to all U.S. companies," and added, "We want U.S. refining assets to be owned by Americans and to increase processing capacity to lower U.S. gasoline prices."

Citgo facility in Texas [Reuters Yonhap News]