Fred Ehrsam seeks control of Venezuelan oil fields amid US policy shifts

Fred Ehrsam, the billionaire co-founder of Coinbase, is pursuing control of three Venezuelan oil fields in the Orinoco Belt as the Trump administration moves to replace operators linked to Nicolás Maduro’s regime with US-aligned investors.

The blocks in question, known as Boca, Guico, and Guara, are currently overseen by Alvorada Heavy Industries Ltda. US officials are reportedly reviewing whether to revoke Alvorada’s existing contracts, which would open the door for Ehrsam and potentially other American investors to step in.

From crypto exchanges to crude oil

Ehrsam has visited Caracas multiple times since at least May 2026 to explore energy investment opportunities.

The timing is also conspicuous. Energy Secretary Chris Wright is scheduled to visit Caracas in early September 2026, where he is expected to announce as many as 17 new oil and gas agreements. Ehrsam’s pursuit of the Orinoco Belt blocks appears to be part of this broader diplomatic and commercial push.

Venezuela’s oil collapse, in context

Venezuela’s oil production tells one of the more dramatic decline stories in modern energy markets. The country once pumped roughly 3.5 million barrels per day, making it one of the top producers in the Western Hemisphere. That figure has cratered to less than 1 million barrels per day.

The collapse stems from a toxic combination of international sanctions, crumbling infrastructure, chronic underinvestment, and governance that prioritized political loyalty over operational competence.

A recent agreement reportedly grants US stakes and off-take rights in concessions spanning 17 fields with an estimated 65 billion barrels of oil reserves. North American Blue Energy Partners is among the US companies that have already secured significant positions under this framework. Ehrsam appears to be pursuing a similar path, albeit through different blocks and presumably different deal structures.

The geopolitical calculus

Washington’s interest in Venezuelan oil is not purely commercial. Displacing Maduro-aligned operators serves a dual purpose: it weakens the financial networks that have sustained the regime while simultaneously expanding US energy influence in Latin America.

Heavy crude from the Orinoco Belt requires specialized refining capacity, which exists primarily along the US Gulf Coast. That geographic dependency creates a natural alignment between Venezuelan production and American refining infrastructure, something the administration appears eager to exploit.

The negotiations remain ongoing, and formal agreements have not been confirmed.

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