US Energy Chief Defends Venezuela Deal Amid Accusations of Coercion

During an appearance on ABC News, Wright defended the administration’s leverage over the region, explicitly stating that Venezuela is currently compelled to partner with the United States because Washington controls the sale of its oil. The remark drew immediate backlash, prompting the Secretary to adopt a different tone an hour later on Fox News. He dismissed allegations of “gunpoint diplomacy” as inaccurate, labeling the administration’s strategy a success that ultimately benefits the Venezuelan people through increased royalty and tax revenues.

Opposition leader María Corina Machado has emerged as a vocal critic of the deal, arguing that the administration’s arrangement legitimizes an oppressive government. Her stance mirrors growing skepticism from economists, including Paul Krugman, who recently described the initiative as a “vile and deeply stupid” plot. Krugman contends that the plan is not only morally fraught but also logistically flawed, noting that the heavy investment required to extract Venezuela’s heavy, viscous crude makes the project’s economic viability highly questionable in the near term.