--- title: "Trump wants oil at $50. He thinks Venezuela can help - but oil drillers might not go along." type: "News" locale: "en" url: "https://longbridge.com/en/news/271972960.md" description: "President Trump aims to lower oil prices to $50 a barrel, a target deemed unsustainable by many U.S. drillers. His administration is seeking Venezuelan oil to boost U.S. market leverage and provide relief at gas pumps. However, current prices are too low for many domestic producers, with crude hovering at five-year lows. While U.S. refiners like Valero Energy benefit from increased Venezuelan imports, companies focused on U.S. drilling face losses. The upcoming meeting with energy executives may focus on fostering a patriotic alliance to enhance energy security." datetime: "2026-01-08T18:41:23.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/271972960.md) - [en](https://longbridge.com/en/news/271972960.md) - [zh-HK](https://longbridge.com/zh-HK/news/271972960.md) generator: "portal-rs" --- # Trump wants oil at $50. He thinks Venezuela can help - but oil drillers might not go along. By Claudia Assis and Myra P. Saefong The president seeks to provide some relief at the nation's gas pumps, but some consider crude prices at $50 a barrel as too low for U.S. drillers An oil pump jack and refinery in Bakersfield, Calif. Some in the industry consider crude prices at $50 a barrel as far too low. President Donald Trump wants oil at $50 a barrel - a level that many in the energy industry consider far too low to be sustainable, and one that could be at odds with the interests of U.S. crude-oil producers. Trump has "repeatedly" wished for lowering crude prices to $50, his "preferred level," the Wall Street Journal has reported, citing two senior administration officials. The Trump administration has moved to secure Venezuelan oil and market stored crude from the South American country. It also has scheduled a meeting with U.S. energy companies to discuss their future involvement in the endeavor. If the finer points of that monumental task are still unknown, the overarching goals seem to be relatively straightforward: Give the U.S. the upper hand in global oil markets and, at home, provide some relief at gasoline pumps. The problem? Crude prices (CL00) at $50 a barrel are far too low, especially for some smaller U.S. drillers, and even oil at about $65 a barrel is a dicey proposition for some domestic producers. Crude prices are currently hovering at five-year lows. Prices would need to rise "substantially beyond that before we see a meaningful increase in oil-oriented drilling here in the U.S.," said Josh Young at oil-and-gas investment firm Bison Interests. Crude futures have fallen in recent sessions as news that oil from Venezuela, beyond a trickle of Chevron's (CVX) imports, will be making its way to U.S. Gulf Coast refineries that are essentially made to handle the heavy crude that the Venezuela and other countries like Mexico produce. Most of what the U.S. produces and has been pumping at record levels in recent years is lighter crude. Shares of U.S. refiners rallied this week - notably Valero Energy (VLO), which is looking at gains of more than 10%. Meanwhile, shares of companies focused on U.S. drilling, such as Devon Energy (DVN) and Targa Resources (TRGP), have seen mounting losses. Valero has the most to gain among refiners from an increase in Venezuelan crude, as it is the largest importer of Venezuelan oil of any refinery in the U.S. and can handle larger quantities of that oil, analysts at Citi said in a note Thursday. Don't miss: Why U.S. oil refiners could be the big winners in Venezuela - even if its actual reserves disappoint The stock-movement picture for integrated energy giants like Chevron and Exxon Mobil (XOM) is more mixed, with Chevron looking at gains of about 1% and Exxon losing about 1% so far this week. Chevron, unlike Exxon and ConocoPhillips (COP), remained in Venezuela after waves of expropriations that started under then-President Hugo Chávez in the 2000s and continued under Nicolás Maduro, who is now in American custody after a U.S. military operation on Saturday. Large, integrated oil companies possess enough heft and global presence to make the many jagged pieces of the energy puzzle fit in a profitable way. Their chemicals and refining operations also benefit from lower crude prices, balancing their scales. And they also may be eager to keep the Trump administration on their side. At the meeting this week with the major energy companies, Trump is likely to appeal to executives' "patriotic spirit," said Phil Flynn, an analyst at the Price Futures Group. Flynn said he's optimistic that controlling Venezuela's oil sector is going to be beneficial to both countries, as Trump views it as a strategic alliance within his broader agenda of considering energy security to be a national-security matter. See also: Investors are stalking riches in Venezuela, and it's not only about oil -Claudia Assis -Myra P. Saefong This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. 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