GOP reckons with support for foreign oil amid Venezuela tensions

President Donald Trump and congressional Republicans spent the last year touting the importance of American energy independence and drilling domestically.

But now the Trump administration is setting their sights on Venezuelan oil — forcing Republicans to either back foreign production or split with the White House.

In the days since the administration arrested Venezuelan President Nicolás Maduro, GOP lawmakers have by and large backed the operation — including Trump’s plans to control Venezuela’s oil exports and encourage American oil companies to renew their presence in the country.

But some Republicans have begun sounding the alarm about what an influx of foreign oil could mean for American oil producers.

“I’ve certainly heard from our small producers in North Dakota that they are worried,” Rep. Julie Fedorchak (R-N.D.) said Wednesday. “It’s important to our state, and the states like North Dakota really suffer when prices get too low. We definitely like to see … a higher price per barrel. And importing more doesn’t get us there.”

North Dakota is a center of production for light oil, which is refined through separate processes than the heavier crude from Latin America.

North Dakota Republican Sen. Kevin Cramer has spent the past days arguing that refineries should keep a focus on that lighter American oil, rather than gearing up for more Venezuelan oil.

“Venezuela’s gain should not come from the American producer,” Cramer said in a social media post.

Sen. Cynthia Lummis (R-Wyo.) similarly said that focus should stay on American energy.

“I can see the temptation to encourage the development of Venezuelan refining capacity and energy development. They have an incredible resource. It’s just phenomenal. But not at the expense of U.S. energy,” Lummis said in an interview.

Sen. John Hoeven (R-N.D.) also said that the American military actions in Venezuela could ultimately serve to make Venezuelan producers more competitive with American producers. But he said it was a price worth paying to ensure that countries like China and Russia did not have access to Venezuelan oil.

“Obviously, we have to be aware of that competition. Our guys are certainly aware of that, and you know, undoubtedly they'll be talking to President Trump,” Hoeven said of American oil producers.

Trump is expected to meet with oil executives Friday, after vowing over the weekend that American companies would go into Venezuela and produce oil there.

A number of longtime domestic drilling supporters in the Senate — including Republican Sens. Dan Sullivan of Alaska, Mike Rounds of South Dakota, Thom Tillis of North Carolina and Steve Daines of Montana — shrugged off concerns about Venezuelan competition, saying that any uptick in production in the region was likely still years away. Companies will have to weigh political risk before upping their investment in Venezuela.