Red China is hurting for certain. The world’s largest oil importer lost oil from Iran and Venezuela, which supplied 15% of the oil it bought last year.
Under Trump, the USA is a net exporter of oil. That should be the case for decades to come because thanks to President Trump and Chief Warrant Officer Five Eric A. Slover, America now controls 65 billion barrels of oil in Venezuela. Slover is the helicopter pilot who took a licking of bullets but kept on ticking as the military extracted Maduro on January 3, earning a Medal of Honor.
Trump wisely kept Maduro’s veep—Delcy Rodriguez—as interim president because she was more malleable than a popular president would be. He got her to sign over control of 65 barrels of oil in the ground—more than doubling oil reserves controlled by the USA (we have 46 billion barrels in the USA.)
This is bad news for Red China, which always delights me. The commies imported 11.6 million barrels per day in 2025. That was 70% of the oil the Chinese used.
This year, its imports have fallen by 11%—down to 7.1 million bpd in June. It rebounded slightly in July and with the re-opening of the Strait of Hormuz, it should rise as Saudi and Iraq will be able to deliver almost 3 million bpd (combined) again.
Iran won’t. It was delivering 1.4 million bpd. Nada now. Between Iran and Venezuela, Trump now controls 15% of the oil Red China imported last year.
Chairman Xi may own American colleges, American media and the Uniparty in DC, but Trump controls the oil.
The Asia Times reported, “China in the crossfire as US widens economic warfare on Iran.
“Torn between strategic gain and economic risk, Beijing bets on how far it can back Tehran without fully provoking Washington.”
The short answer is not very far because Trump knows the value of what he holds. Oil for rare earth elements would be a nice deal if you could trust Red China. So it is not going to happen.
Trump also controls the currency.
The Asia Times story said, “Beijing’s struggle comes as the U.S. Department of the Treasury launched Operation Economic Outcast on Monday, an unprecedented, whole-of-government campaign to isolate Iran and sever the networks that sustain it. The action designated nearly 60 entities, individuals and vessels across five sectors, including digital assets, technology, gold, aviation and shipping.”
Scott Bessent is putting his hedge fund skills to work to squeeze the Chinese.
The story said, “Bessent said Iran faces a choice between total isolation and rejoining the global economy if it changes course. He added that governments still financing Tehran have a limited window to comply before the Treasury acts unilaterally.
“The new round of sanctions comes ahead of a summit between President Donald Trump and Chinese President Xi Jinping at the White House scheduled for September 24.”
Bessent went on TV and said, “The Chinese have been buying Iranian oil, but there are only about 30 million barrels of Iranian oil left on the water—that will run out.”
Xi ain’t the only one in trouble because another Asia Times story reported, “Venezuela is considering whether it should quit OPEC, according to people familiar with the matter, potentially delivering a fresh blow to the oil cartel it helped create more than six decades ago.
“The idea of an exit has been a topic in conversations with U.S. officials, and no final decision has been made, said some of the people, asking not to be identified discussing private information.
“A decision to pull out of the Organization of the Petroleum Exporting Countries would underline the sweeping political realignment in Caracas since President Donald Trump ousted the longtime leader Nicolás Maduro and took control of the nation’s oil sales.
“Washington’s growing influence is also reflected in US talks with Venezuelan leaders to take a large stake in the nation’s oil fields—a development that would have been unthinkable just two years ago.”
Two years ago, the unthinking Joe Biden was president.
But the lack of thinking goes beyond President Al Z. Heimer and his wife, Dr. Demento. TDS was on full display after Maduro’s arrest. The U.S. Oil & Gas Association on Wednesday tweeted this trip down the memory trail:
CNN: “The appetite for jumping into Venezuela right now is pretty low. We have no idea what the government there will look like. The president’s desire is different than the industry’s.”
Doug Leggate, Wolfe Research, on CNN Business: “The idea that there will be an overnight restart of the Venezuelan oil industry is just unrealistic. It’s all very premature.”
Ryan Kellogg, University of Chicago, on CNN: “The word of this administration is nowhere near enough. This takes a very strong political consensus, and we’re very far from that.”
CNN experts would have you believe that oil companies would turn down access to the world’s largest proven oil reserve—an industry that is willing to go inside the Arctic Circle to fetch oil.
And so on Wednesday, Brian Sullivan of CNBC, tweeted: “Companies signing their deals in Venezuela’s presidential palace. We were given a near front row seat to the event. Incredible to witness. Chevron, ENI, GE Vernova and more were there.”
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Access to one-fifth of the world’s largest oil reserve attracts oilmen like communism attracts flies and Democrats. Trump knew all along what he was doing. Any sane American knew. Operations Absolute Resolve and Epic Fury have golden goals, but they also cut Xi and Red China off at the knees. Electric cars may end the need for gasoline but good luck making plastic out of wind and solar energy.
When Trump is through, we will call the oil cartel nations NOPEC and make ChairmanXi jump through our hoops to get oil. Maybe we could have him work weekends at Disney World in a Winnie the Pooh costume.
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This article first appeared on Don Surber’s Substack. Reprinted here with permission.
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