Wirelines
US DOE outlines plans for oil market and production overhaul in Venezuela
On 7 January, the US Department of Energy (DOE) announced that the US government had begun marketing Venezuelan crude oil in the global marketplace following the ousting and arrest of Venezuelan President Nicolás Maduro.
In a statement, the DOE said that oil transported in and out of Venezuela will go through “legitimate and authorized channels consistent with US law and national security.” The US is also selectively rolling back sanctions to enable the transport and sale of Venezuelan crude and oil products to global markets.
The DOE further said that the US will authorize the import of select oilfield equipment, parts and services to offset Venezuela’s production decline and drive near-term growth.
According to analyses by S&P Global Platts, an increase in Venezuelan crude exports would be bearish for heavy crude prices. Wider light-heavy crude spreads would benefit the US Gulf Coast and US Midwest refiners the most, given their large coking capacity, although major movement had yet to be reflected in margins as of 7 January.
Platts also noted that a potential increase in Venezuelan crude flows to the US Gulf could place downward pressure on fuel oil prices in the region, amid strong competition that might displace product currently arriving from Mexico.
Venezuela has some of the largest oil reserves in the world, at approximately 364 billion barrels of oil equivalent, according to S&P Global Energy. Oil production has fallen from 3 million barrels per day (bpd) in January 2008 to roughly 963,000 bpd in December 2025 due to a lack of investment in the country’s infrastructure.
UK government maintains Energy Profits Levy for 2026
In its 2025 Annual Budget presented on 26 November, the UK government indicated that it will remain firm on windfall taxes from oil and gas production.
Under the current tax regime, the Energy Profits Levy (EPL) adds a 38% windfall tax for producers when either oil or gas prices exceed government-set thresholds. This would bring the overall tax burden for producers to 78%, which some data shows would put the profit of companies to negative levels. For 2026-2027, the price thresholds are $90 per barrel for oil and $90 per therm for natural gas (1 therm equals 100,000 Btu).
The government has said the levy would be replaced in March 2030 with a permanent Oil and Gas Price Mechanism tax rate of 35%. However, the UK oil and gas industry had lobbied the government for an earlier replacement of the EPL, noting that the unpredictability of the current tax regime stifles investment in the UK North Sea. The EPL has already been adjusted several times since its initial implementation in 2022.
The Offshore Energies UK issued a statement in November condemning the government’s decision, noting that it will cost tens of thousands of jobs, cripple investment and undermine the UK’s energy security.
The group’s CEO David Whitehouse stated: “Fixing this outdated tax is the key to unlocking billions in investment across the UK’s entire energy mix. Waiting four years for reform of this tax is too late. The North Sea continues to be one of the least competitive places for our industry in the world.”
Click here to read about the UK’s planned Oil and Gas Price Mechanism.
US House passes SPEED Act in major step to modernize federal permitting process
On 18 December, the US House of Representatives passed the Standardizing Permitting and Expediting Economic Development (SPEED) Act, a permitting reform bill aimed at simplifying federal environmental reviews and accelerating approvals for major energy, infrastructure, manufacturing and data center projects.
The SPEED Act is sponsored by House Natural Resources Committee Chairman Bruce Westerman (R-Ark.) and co-sponsored by Representative Jared Golden (D-Maine). It is one of the most significant attempts in decades to amend the National Environmental Policy Act (NEPA).
NEPA sets guidelines for evaluating the environmental impact of all major federal actions and established the Council on Environmental Quality. The SPEED Act would streamline environmental reviews and shorten approval timelines, changes supporters say are needed to reduce delays and litigation risks that have slowed the development of energy and infrastructure projects.
The Senate had not scheduled a vote on the bill as of 12 January.
Click here to read about the House Natural Resources Committee’s SPEED Act.
OPEC+ reaffirms pause on planned production hikes
On 4 January, OPEC+ confirmed it would keep oil production steady through Q1 2026, as eight key producers reaffirmed their commitment to market stability. The group had announced in November 2025 its intent to pause planned production increases in February and March 2026, citing seasonal demand; this decision was affirmed in the latest meeting.
However, the eight OPEC+ members – Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman – also said that the previously announced voluntary cuts of 1.65 million barrels per day could be returned to the market either in part or in full depending on evolving market conditions. The group emphasized it would remain flexible and noted it would meet again on 1 February to review market conditions.
