{"id":387397,"date":"2025-07-07T12:58:09","date_gmt":"2025-07-07T10:58:09","guid":{"rendered":"https:\/\/climatescience.press\/?p=387397"},"modified":"2025-07-07T12:58:11","modified_gmt":"2025-07-07T10:58:11","slug":"treasury-must-protect-american-energy-companies","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=387397","title":{"rendered":"Treasury must protect American energy companies"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"723\" height=\"434\" data-attachment-id=\"387398\" data-permalink=\"https:\/\/climatescience.press\/?attachment_id=387398\" data-orig-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0American-flags-oil-rigs-scaled-1.jpg?fit=2560%2C1536&amp;ssl=1\" data-orig-size=\"2560,1536\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"0American-flags-oil-rigs-scaled\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0American-flags-oil-rigs-scaled-1.jpg?fit=723%2C434&amp;ssl=1\" src=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0American-flags-oil-rigs-scaled-1.jpg?resize=723%2C434&#038;ssl=1\" alt=\"\" class=\"wp-image-387398\" srcset=\"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0American-flags-oil-rigs-scaled-1.jpg?resize=1024%2C614&amp;ssl=1 1024w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0American-flags-oil-rigs-scaled-1.jpg?resize=300%2C180&amp;ssl=1 300w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0American-flags-oil-rigs-scaled-1.jpg?resize=768%2C461&amp;ssl=1 768w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0American-flags-oil-rigs-scaled-1.jpg?resize=1536%2C922&amp;ssl=1 1536w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0American-flags-oil-rigs-scaled-1.jpg?resize=2048%2C1229&amp;ssl=1 2048w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0American-flags-oil-rigs-scaled-1.jpg?resize=1200%2C720&amp;ssl=1 1200w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0American-flags-oil-rigs-scaled-1.jpg?w=1446&amp;ssl=1 1446w, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0American-flags-oil-rigs-scaled-1.jpg?w=2169&amp;ssl=1 2169w\" sizes=\"auto, (max-width: 723px) 100vw, 723px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From <a href=\"https:\/\/www.cfact.org\/2025\/07\/06\/treasury-must-protect-american-energy-companies\/\">CFACT<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By <a href=\"https:\/\/www.cfact.org\/author\/paul3\/\">Paul Driessen<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Continuing instability in the Middle East makes it imperative that America protects its domestic energy suppliers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under President Donald Trump, US energy companies that were&nbsp;<a href=\"https:\/\/www.upi.com\/Energy-News\/2010\/11\/08\/Venezuela-growth-hit-by-state-seizures\/45111289217060\/\">nationalized or had assets seized<\/a>&nbsp;by&nbsp;Venezuela\u2019s government now have a chance for restitution \u2013 unless European bondholders get priority.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One such company is Houston-based&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/energy\/citgo-auction-jeopardy-venezuela-bondholders-pursue-parallel-claims-2024-10-09\/\">Citgo Petroleum<\/a>, the seventh-largest refiner in the United States. The company is actually owned through subsidiaries by Venezuela\u2019s state-owned oil company, Petr\u00f3leos de Venezuela, SA (PDVSA), which is essentially an arm of President Nicolas Maduro\u2019s dictatorial regime.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Citgo is currently embroiled in a court-ordered auction. It\u2019s being sold to repay debts incurred by Maduro and previous dictator&nbsp;<a href=\"https:\/\/panamaadvisoryinternationalgroup.com\/blog\/how-chavez-ruined-venezuelas-economy\/\">Hugo Chavez<\/a>, both of whom&nbsp;<a href=\"https:\/\/dialogo-americas.com\/articles\/venezuelas-business-crisis\/\">expropriated American companies<\/a>&nbsp;and assets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Until now, victims of these dictators\u2019 thefts \u2013 more than a dozen companies \u2013 were unable to recoup their losses because the Biden administration&nbsp;<a href=\"https:\/\/www.bloomberglinea.com\/english\/bonds-of-venezuelas-pdvsa-surge-160-on-investor-optimism-about-citgo-sale\/\">protected the company<\/a>&nbsp;from being sold as part of a strategy to prop up Venezuela\u2019s opposition. That could change now.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The auction has been scheduled, and various companies, including some that lost assets, have submitted bids. The fly in the ointment is that European bondholders are&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/energy\/citgo-auction-jeopardy-venezuela-bondholders-pursue-parallel-claims-2024-10-09\/\">trying to jump the line<\/a>&nbsp;\u2013 and claim proceeds from the auction ahead of American companies that the regime robbed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In 2020, those PDVSA bondholders&nbsp;<a href=\"https:\/\/www.bloomberglinea.com\/english\/bonds-of-venezuelas-pdvsa-surge-160-on-investor-optimism-about-citgo-sale\/\">helped bail out<\/a>&nbsp;the collapsing Maduro dictatorship, betting that they would reap big payouts under a contract that collateralized their bonds with 50.1% of Citgo shares.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By late August 2023, the bonds&nbsp;<a href=\"https:\/\/www.bloomberglinea.com\/english\/bonds-of-venezuelas-pdvsa-surge-160-on-investor-optimism-about-citgo-sale\/\">had already surged 160%<\/a>&nbsp;and \u201cinvestors that scooped up one oil company\u2019s bonds appear to be headed for a massive payout,\u201d Bloomberg Linea reported.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The bondholders had to know they were dealing with a corrupt government and that Venezuela\u2019s National Assembly had announced publicly that&nbsp;<a href=\"https:\/\/www.project-syndicate.org\/commentary\/venezuela-pdvsa-debt-default-creditor-risk-by-mitu-gulati-et-al-2019-10\">it never approved<\/a>&nbsp;the Citgo bond, as required by the Venezuelan Constitution. That could make the collateralized contract for Citgo invalid.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the bondholders were pretty obviously trying to profit from a nation in crisis. They had to have been betting they would profit&nbsp;from&nbsp;<a href=\"https:\/\/citywire.com\/selector\/news\/why-ashmore-owns-defaulted-venezuelan-debt\/a1204842#:~:text=Ashmore's%20head%20of%20research%20explains,unless%20a%20contribution%20is%20made.\">selling the collateral<\/a>&nbsp;if Venezuela defaulted.&nbsp;In the meantime, their money helped Maduro cling to power, suppress dissent, and delay the economic reckoning that Maduro\u2019s own policies ensured.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, those&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/energy\/qa-is-venezuela-about-lose-citgo-its-most-prized-foreign-asset-2025-06-16\/\">bondholders want<\/a>&nbsp;to acquire Citgo as payment, thereby cashing in on the misery they helped prolong. (The PDVSA bondholders are not private citizens but large corporations,&nbsp;<a href=\"https:\/\/www.bloomberglinea.com\/english\/bonds-of-venezuelas-pdvsa-surge-160-on-investor-optimism-about-citgo-sale\/\">including<\/a>&nbsp;London-based Ashmore Group PLC, Madrid-based Auriga Global Investors, and UK- and Morocco-based Altana Credit Opportunities Fund.)&nbsp;The question is whether they should take priority over the actual victims of Maduro\u2019s expropriations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Thankfully, under President Trump, the US Treasury&nbsp;Department\u2019s Office of Foreign Assets Control (OFAC) has already&nbsp;<a href=\"https:\/\/ofac.treasury.gov\/recent-actions\/20250620_33\">refrained from issuing licenses<\/a>&nbsp;to take over Citgo&nbsp;through December 20, thereby denying acquisition by the bondholders that helped prolong Maduro\u2019s regime.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However,&nbsp;OFAC must go further \u2013 and clarify that it will never permit speculating bondholders to profit before defrauded American companies are repaid.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This clarification is sorely needed, and just this week, one of the defrauded companies&nbsp;<a href=\"https:\/\/static1.squarespace.com\/static\/678169d94a42245884c4f0f3\/t\/685a7a46b3d4b57b7f2652d8\/1750760006252\/2025-06-24+%5B1816%5D+-+Crystallex+International+Corporation+v.+-+Letter+to+The+Honorable+Leonard+P.+Stark+from+Kevin+J.+Mangan%2C+Esq.+regarding+Emergency.pdf\">filed an emergency request<\/a>&nbsp;with the&nbsp;Delaware District Court that is overseeing the Citgo auction. Citgo\u2019s lawyers asked the court to seek&nbsp;guidance from the OFAC as to whether the Office will continue to prevent the bondholders from taking over Citgo&nbsp;past the deadline for the auction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This uncertainty \u2013 whether a new owner is&nbsp;<em>purchasing an asset<\/em>&nbsp;or&nbsp;<em>incurring a liability<\/em>&nbsp;\u2013 must be resolved, hopefully with the result that swindled American companies can recoup some of their losses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the final auction deadline set for July 2, OFAC has a short window in which to act.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By issuing this clarification, OFAC can score another win for President Trump\u2019s impressive record of championing American justice and putting American companies first.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Continuing instability in the Middle East makes it imperative that America protects its domestic energy suppliers.<\/p>\n<p>Under President Donald Trump, US energy companies that were nationalized or had assets seized by Venezuela\u2019s government now have a chance for restitution \u2013 unless European bondholders get priority.<\/p>\n","protected":false},"author":121246920,"featured_media":387398,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818336,691836372,691834688,691836374,691836373,691836371,691833487],"class_list":{"0":"post-387397","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-biden-administration","9":"tag-citgo-petroleum","10":"tag-domestic-energy","11":"tag-office-of-foreign-assets-control-ofac","12":"tag-petroleos-de-venezuela","13":"tag-us-energy-companies","14":"tag-us-president-donald-j-trump","16":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/07\/0American-flags-oil-rigs-scaled-1.jpg?fit=2560%2C1536&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1CMl","jetpack-related-posts":[{"id":421428,"url":"https:\/\/climatescience.press\/?p=421428","url_meta":{"origin":387397,"position":0},"title":"Energy Security: Trump Bluntly Admits Why Venezuelan Action Was Needed","author":"uwe.roland.gross","date":"15\/01\/2026","format":false,"excerpt":"The calendar had just barely heralded the new year when President Donald J. Trump got 2026 off to a rollicking start with the capture of Venezuelan President Nicolas Maduro and his wife.","rel":"","context":"In \"Energy Dominance\"","block_context":{"text":"Energy Dominance","link":"https:\/\/climatescience.press\/?tag=energy-dominance"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMFvK6J38vGZ2FN6jIfAYUrUZsqbLZuTaO_6GqR8uV7hhwsL5VHtKncNm_lSQ_x87ubypWFoBU1whROXuL_MnG8HUpQB8YO1UwZVr73tql1koHly0k_yVxhiqFLNqg.jpeg?fit=1200%2C658&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMFvK6J38vGZ2FN6jIfAYUrUZsqbLZuTaO_6GqR8uV7hhwsL5VHtKncNm_lSQ_x87ubypWFoBU1whROXuL_MnG8HUpQB8YO1UwZVr73tql1koHly0k_yVxhiqFLNqg.jpeg?fit=1200%2C658&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMFvK6J38vGZ2FN6jIfAYUrUZsqbLZuTaO_6GqR8uV7hhwsL5VHtKncNm_lSQ_x87ubypWFoBU1whROXuL_MnG8HUpQB8YO1UwZVr73tql1koHly0k_yVxhiqFLNqg.jpeg?fit=1200%2C658&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMFvK6J38vGZ2FN6jIfAYUrUZsqbLZuTaO_6GqR8uV7hhwsL5VHtKncNm_lSQ_x87ubypWFoBU1whROXuL_MnG8HUpQB8YO1UwZVr73tql1koHly0k_yVxhiqFLNqg.jpeg?fit=1200%2C658&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQMFvK6J38vGZ2FN6jIfAYUrUZsqbLZuTaO_6GqR8uV7hhwsL5VHtKncNm_lSQ_x87ubypWFoBU1whROXuL_MnG8HUpQB8YO1UwZVr73tql1koHly0k_yVxhiqFLNqg.jpeg?fit=1200%2C658&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":420902,"url":"https:\/\/climatescience.press\/?p=420902","url_meta":{"origin":387397,"position":1},"title":"How One Arrest Could Refill the Strategic Oil Reserves Biden Drained","author":"uwe.roland.gross","date":"11\/01\/2026","format":false,"excerpt":"The Trump administration\u2019s capture of socialist Venezuelan dictator Nicol\u00e1s Maduro has thrown the region into uncertainty while presenting opportunities that could give the U.S. a geopolitical and economic advantage.","rel":"","context":"In \"Nicol\u00e1s Maduro\"","block_context":{"text":"Nicol\u00e1s Maduro","link":"https:\/\/climatescience.press\/?tag=nicolas-maduro"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQM1LwVCdTWsBCNLj2Ms9age1TphWeFUNnWCIkBxoyj9uB9gWwGNexkGpT3JlxI9UJGHakwggKCsJVOY1_kzJDvzmLlKYzaEgfKFqjPPCnn6CYovfA-YxTED0TaI2rZf.jpeg?fit=1200%2C686&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQM1LwVCdTWsBCNLj2Ms9age1TphWeFUNnWCIkBxoyj9uB9gWwGNexkGpT3JlxI9UJGHakwggKCsJVOY1_kzJDvzmLlKYzaEgfKFqjPPCnn6CYovfA-YxTED0TaI2rZf.jpeg?fit=1200%2C686&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQM1LwVCdTWsBCNLj2Ms9age1TphWeFUNnWCIkBxoyj9uB9gWwGNexkGpT3JlxI9UJGHakwggKCsJVOY1_kzJDvzmLlKYzaEgfKFqjPPCnn6CYovfA-YxTED0TaI2rZf.jpeg?fit=1200%2C686&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQM1LwVCdTWsBCNLj2Ms9age1TphWeFUNnWCIkBxoyj9uB9gWwGNexkGpT3JlxI9UJGHakwggKCsJVOY1_kzJDvzmLlKYzaEgfKFqjPPCnn6CYovfA-YxTED0TaI2rZf.jpeg?fit=1200%2C686&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQM1LwVCdTWsBCNLj2Ms9age1TphWeFUNnWCIkBxoyj9uB9gWwGNexkGpT3JlxI9UJGHakwggKCsJVOY1_kzJDvzmLlKYzaEgfKFqjPPCnn6CYovfA-YxTED0TaI2rZf.jpeg?fit=1200%2C686&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":420598,"url":"https:\/\/climatescience.press\/?p=420598","url_meta":{"origin":387397,"position":2},"title":"Trump\u2019s Venezuelan Gambit and the Reordering of Global Oil Geopolitics","author":"uwe.roland.gross","date":"09\/01\/2026","format":false,"excerpt":"In early January 2026, President Donald Trump authorized a daring U.S. military operation to capture Venezuelan President Nicol\u00e1s Maduro, framing it as an arrest on narcoterrorism charges. This action, dubbed by analysts as Trump's \"Venezuelan gambit,\" has thrust the oil-rich nation into the spotlight, with Trump openly declaring intentions to\u2026","rel":"","context":"In \"\u2018Bolivarian Revolution\u2019\"","block_context":{"text":"\u2018Bolivarian Revolution\u2019","link":"https:\/\/climatescience.press\/?tag=bolivarian-revolution"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/image-127.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/image-127.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/image-127.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/image-127.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":420359,"url":"https:\/\/climatescience.press\/?p=420359","url_meta":{"origin":387397,"position":3},"title":"Venezuelan Oil: Statism to Liberation?","author":"uwe.roland.gross","date":"07\/01\/2026","format":false,"excerpt":"Venezuela's oil industry has long exemplified statism: full state control via Petr\u00f3leos de Venezuela S.A. (PDVSA) after nationalization in the 1970s, intensified under Hugo Ch\u00e1vez's 2007 expropriations of private assets. This model, combined with mismanagement, corruption, and U.S. sanctions since 2019, collapsed production from over 3 million barrels per day\u2026","rel":"","context":"In \"Cuba\"","block_context":{"text":"Cuba","link":"https:\/\/climatescience.press\/?tag=cuba"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/0Screenshot-2026-01-07-194335.png?fit=1200%2C843&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/0Screenshot-2026-01-07-194335.png?fit=1200%2C843&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/0Screenshot-2026-01-07-194335.png?fit=1200%2C843&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/0Screenshot-2026-01-07-194335.png?fit=1200%2C843&ssl=1&resize=700%2C400 2x, 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