White House says U.S. will control Venezuelan oil industry 'indefinitely'

Amna Nawaz:

The Trump administration escalated its pressure on and control of Venezuelan oil today, seizing two oil tankers and declaring it intends to -- quote -- "indefinitely sell the country's oil.

Nick Schifrin reports.

Nick Schifrin:

A middle-of-the-night capture in the Caribbean. The U.S. military posted this video of U.S. forces seizing the Sophia, a sanctioned Panama-flagged super tanker carrying Venezuelan oil.

Just hours before, U.S. forces seized another tanker they'd been pursuing for two weeks after it slipped through the U.S. Caribbean quarantine. The Marinera recently changed its name and claimed to be Russian-flagged, and Russian TV showed this footage from its deck. A Russian ship and submarine provided an escort, but did nothing to stop the U.S. capture.

It's a tale of two tankers and of global U.S. pressure on Venezuela's most valuable asset. The U.S. military said the Sophia sailed without its transponder, part of a Venezuelan shadow fleet, and is now being escorted to the U.S. The Marinera met its fate about 5,000 miles away, just south of Iceland, with the help of British armed forces.

The U.S. envisions total control over the extraction and sale of Venezuelan oil forever, starting with crude already produced, as energy Secretary Chris Wright laid out today.

Chris Wright, U.S. Energy Secretary:

We're going to market the crude coming out of Venezuela first, this backed-up stored oil, and then indefinitely, going forward, we will sell the production that comes out of Venezuela into the marketplace.

Nick Schifrin:

Venezuela has the largest oil reserves in the world, which the U.S. helped extract beginning a century ago. But the country only produces a fraction of its capacity, and Venezuela's former leader Hugo Chavez kicked out some us and other foreign energy companies.

Chris Wright:

So, in the long run, create the conditions that the major American companies that were there before, maybe that weren't there before, but want to be there, will go in. The resources are immense. This should be a wealthy, prosperous, peaceful energy powerhouse. That's the plan.

Ian Ralby, Auxilium Worldwide:

The U.S. is essentially declaring domestic legal rights over a foreign state without being the official occupying power or declaring itself the sovereign power. So, we're in a very unusual place here, and it's not entirely clear what that means.

Nick Schifrin:

Ian Ralby is founder and CEO of the nonprofit Auxilium Worldwide and focuses on maritime security.

Ian Ralby:

Previously, the oil industry in Venezuela had been nationalized and run by PDVSA, the state-owned oil company. This is now sounding like the U.S. government is going to serve as the state-owned oil company or overseer of extraction. It is unclear, though, what this actually means in practice and whether actual oil companies are really part of this plan or not.

Nick Schifrin:

That's because the U.S. cannot yet guarantee a Venezuela in which American companies feel confident to spend billions in necessary investment.

Ian Ralby:

There needs to be a degree of stability for oil extraction and for a marketplace participation. And that is not right now what we see on the ground in the reality of Venezuela.

Nick Schifrin:

To try and speed up investment, today, White House Press Secretary Karoline Leavitt said the U.S. would roll back Venezuelan sanctions selectively.

Karoline Leavitt, White House Press Secretary:

We obviously have maximum leverage over the interim authorities in Venezuela right now. And the president has made it very clear that this is a country within the United States -- the Western Hemisphere, close by the United States, that is no longer going to be sending illegal drugs to the United States of America.

Nick Schifrin:

The other Western Hemisphere target of the Trump administration this week, Greenland. The world's largest island has been part of a Kingdom of Denmark since 1721. Today, it's a self-governing territory inside the NATO ally.

It is also geographically in the Americas and a critical missile defense site, the shortest route between the United States and Russia.

And it's rich in rare earth minerals and potential offshore oil and gas, which is why, last night, the White House released a statement that included -- quote -- "The president and his team are discussing a range of options to pursue this important foreign policy goal. And, of course, utilizing the U.S. military is always an option at the commander in chief's disposal."

Today, the U.S.' top diplomat emphasized diplomacy.

Marco Rubio, U.S. Secretary of State: If the president identifies a threat to the national security of the United States, every president retains the option to address it through military means. As a diplomat, which is what I am now, and what we work on, we always prefer to settle it in different ways.

Nick Schifrin:

The threat has sparked enormous European concern, but also criticism, as voiced today by European Council President Antonio Costa.

Antonio Costa, President, European Council:

The European Union cannot accept violations of the international law, whether in Cyprus, Latin America, Greenland Ukraine, or Gaza.

Nick Schifrin:

The U.S. has long considered NATO the world's most successful alliance, but the White House today had to reiterate its support for Article 5 to our Liz Landers.

Karoline Leavitt:

We're always going to be there for NATO, even if they have not done right by the United States of America.

Nick Schifrin:

And so, once again, President Trump disrupted global relations, only to try and provide reassurance. But the alliance is today skeptical and still worried.

For the "PBS News Hour," I'm Nick Schifrin.

Amna Nawaz:

And "News Hour" has learned senior administration officials today told members of Congress the proceeds from the sale of Venezuelan oil would not go into the U.S. treasury, but to private banks.

That's according to five bipartisan congressional officials who spoke to our Lisa Desjardins and Nick Schifrin. The Energy Department today acknowledged the money would go into -- quote -- "globally recognized banks to guarantee the legitimacy and integrity of the ultimate distribution of proceeds."

Energy Secretary Chris Wright told CNN the funds would go to -- quote -- "the interim authorities" in Venezuela. However, the White House disputed our reporting and told us no final decisions have been made.