Trump Administration Plans Venezuelan Oil Exports via St. Croix

The Trump administration announced a collaboration to produce and export crude oil from Venezuela, designating the idled St. Croix Refinery in the U.S. Virgin Islands as a key asset for the operation due to its proximity to Venezuela. While the project could establish the refinery as the territory's largest employer and taxpayer, the initiative coincides with a severe financial crisis in the U.S. Virgin Islands.

The territory currently faces 1.5 billion dollars in bond debt and 4 billion dollars in unfunded pension and healthcare liabilities. The Virgin Islands Water and Power Authority is reported to be virtually insolvent, antiquated, and unreliable.

Proposals to restart the refinery include a formal financial restructuring under the Puerto Rico Oversight, Management, and Economic Stability Act of 2016. This would require the United States Congress to amend the act to allow for an oversight board in the Virgin Islands to address government mismanagement of federal hurricane recovery funds, border security concerns, and systemic economic distress.