Venezuela’s Oil Flow to the U.S. 1/7/26

Summary

Squawk Pod Episode Summary

Episode Title: Venezuela’s Oil Flow to the U.S.
Date: January 7, 2026
Hosts: Becky Quick, Joe Kernen, Andrew Ross Sorkin
Key Contributors: Eamon Javers, Brian Sullivan, Guest Analysts, Cameron Costa

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Episode Overview

This episode of Squawk Pod focuses on President Trump’s surprise announcement of a massive oil deal involving the shipment of Venezuelan crude to the United States, the evolving details around it—including sanction rollbacks, the flow of money, and geopolitical implications—and touches on the growing debate about U.S. intentions in Greenland. The episode also features an in-depth follow-up on the Los Angeles wildfires, marking one year since the disaster, with reporter/author Jacob Soboroff reflecting on recovery and economic fallout.

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Key Discussion Points & Insights

1. Venezuelan Oil Deal Breakdown

Initial Announcement and Uncertainties

• President Trump's Social Media Post: U.S. to receive 30–50 million barrels of Venezuelan oil to be sold at market price, with proceeds “controlled by me as president… to benefit the people of Venezuela and the United States.” (03:17)
• Unclear Framework: Details missing about whether this is a one-off deal or an ongoing arrangement, who the deal was made with in Venezuela, and what the U.S. offers in exchange.
• Eamon Javers: "It's not clear whether this is to be a one-time payment or an ongoing program and who exactly the president concluded this agreement with in Venezuela." (03:41)

Breaking News and Further Reporting

• Brian Sullivan Exclusive (live at the Goldman Sachs Energy Conference, Miami):
  • The oil flow is not a one-time “payment” but an ongoing indefinite arrangement. (13:52, 15:34)
  • U.S. and allied refiners—capable of processing Venezuela’s heavy, sour crude—will become a continued outlet for previously sanctioned oil that would have gone to China.
  • Sanctions on Venezuelan oil are to be selectively rolled back as an incentive (“carrot”). (12:02, 15:34)
  • Proceeds from U.S. sales will be held in American banks until Venezuela is deemed stable and secure, then released back to support Venezuelan “people and infrastructure.”
  • Sullivan: “The United States is selectively rolling back sanctions to enable the transport and sale of Venezuelan crude and oil products to global markets. Those funds will be dispersed for the benefit of the Venezuelan people." (19:03)
  • Details on pricing: Oil sold at global market rates, with rough math putting the first tranche (30–50 million barrels at ~$50/barrel) at $2 billion. (24:30)

Open Questions and Analyst Debate

• Nature of the Deal: Hosts speculate whether oil is being "commandeered," if this is some form of repayment for seized assets, regime change efforts, or a quid pro quo (“mafia situation”). (07:13–08:49)
• Government Oversight: Proceeds will be withheld until U.S. authorities approve Venezuela’s readiness—implying strong American control over the disbursement.
• Potential Impact: U.S. refiners stand to benefit (Valero, Phillips 66, Marathon Petroleum); energy stocks show upticks. (21:13)
• Bigger Picture: This move is viewed as both a geopolitical reorientation (oil away from China) and a mechanism to influence Venezuela’s domestic and political stability.

Notable Quotes

• Brian Sullivan (Breaking news): “That was not a one time announcement... the sales from Venezuela to the United States and other Western nations will continue indefinitely.” (15:34)
• Eamon Javers: “One of the big sort of first principle questions is, what is this a payment for? Right. Did the United States agree to anything on its side in exchange for this oil? And we just don't know that.” (06:22)
• Guest Analyst: “It brought up all kinds of quid pro quo... it's totally different if they're just freeing up what they used to sell to China and now selling it to us and to other Western nations.” (19:39)

Key Timestamps

• 03:17 – President Trump’s oil announcement recapped.
• 06:22 – Eamon Javers raises questions about the purpose and details of the deal.
• 13:52 / 15:34 – Brian Sullivan with live breaking news and key clarifications.
• 19:03 – Sullivan reads White House-sourced summary of the deal mechanics.
• 24:30 – Discussion of pricing, financial flow, and sanction rollback conditions.

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2. U.S.–Greenland Tension

• White House Rhetoric on Greenland: The administration floated military options to “acquire” Greenland, sparking confusion and alarm in Denmark and among U.S. allies. (04:09)
  • "Acquiring Greenland is a national security priority... utilizing the US Military is always an option." — White House Press Secretary, relayed by Eamon Javers (04:09)
• NATO Implications: Experts and former officials question whether U.S. forces would obey an order to attack a NATO ally, noting the potential collapse of the alliance.
  • "That's the end of the NATO alliance... would US Military leaders execute an order from the president?" — Eamon Javers (09:56)
• Senate & State Department Responses: Mixed messaging; State Department downplays imminent invasion.

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3. Year One After the LA Wildfires

Immediate and Ongoing Impact

• Jacob Soboroff (Reporter/Author) discusses the aftermath of the LA Fires:
  • “16,000 structures were destroyed. 31 people were killed. An area three times the size of Manhattan burned down in what is now the costliest wildfire event in the history of the United States of America.” (27:09, restated at 30:47)
  • Many affected residents have not rebuilt; corporate investors are sweeping in, with 40% of lots bought by non-locals. (30:05)
• Barriers to Recovery:
  • Economic: Insurance coverage is insufficient or unavailable for many survivors; home values have plummeted.
  • Labor: Immigration policy cited as a factor limiting workforce availability for rebuilding.
    • “ICE policies have been largely targeting people that work at Home Depots in L.A... historically would be engaged in homebuilding.” (31:36)

Social and Policy Observations

• Soboroff’s Personal Angle: Reporter’s own brother lost his house; highlights personal strain and anxiety about the future.
• Systemic Issues: Multiple causes for the disaster, including arson, faulty infrastructure, and climate conditions. Political leaders face blame, but no “single proximate cause.”
• Neighborhood Change: Corporate-style, out-of-character homes replacing community landmarks.

Memorable Exchanges

• Andrew Ross Sorkin: “How do you watch your childhood neighborhood carbonized in front of your own eyeballs as you are covering it live on national television?” (02:25, 27:09)
• Soboroff: “People are terrified about the circumstances... It exposes sort of the fissures in our society.” (30:01)
• On the future of LA: “I don’t know. I think a lot of people would like it to look more like the new development... I think it’ll be somewhere in between.” (34:39)

Key Timestamps

• 27:09 – Soboroff segment begins: recap of wildfire scope.
• 30:05 – Corporate investors’ impact discussed.
• 31:36 – Immigration policy as a barrier to rebuilding.
• 34:39 – Speculation about LA’s long-term recovery.

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Memorable Moments & Tone

• The panel frequently expresses skepticism, calling out the “bizarre” and opaque nature of the initial Venezuela oil announcement—describing it with terms like “mafia situation” and “quid pro quo” (07:44–08:49).
• Joe Kernen uses sardonic humor to highlight the confusion: “We're commandeering the oil and send it here… handing it to which company? ... How would this even begin to work?” (06:06–06:12)
• Brian Sullivan maneuvers real-time updates, referencing his frantic contact with White House sources live from the conference floor.
• Soboroff’s wildfire reflections bring a personal, heartfelt close to the episode, shifting from global geopolitics to an intimate focus on disaster, community resilience, and loss.

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Structured Timeline of Key Segments

| Timestamp | Segment | |-----------|------------------------------------------------------------| | 01:04 | Cameron Costa tees up the Venezuelan oil story | | 03:17 | Eamon Javers recounts Trump’s oil and Greenland moves | | 06:22 | Hosts debate the nature/terms of the oil deal | | 09:56 | Javers on NATO, legal/military dilemmas | | 13:52 | Brian Sullivan breaks new White House info on oil flow | | 19:03 | Sullivan clarifies flow of funds, sanction rollbacks | | 24:30 | Pricing and proceeds—from U.S. banks to Venezuela | | 27:09 | Jacob Soboroff’s segment: LA wildfires, recovery, book | | 30:05 | Economic impact: investors, insurance, livelihoods | | 34:39 | Future of communities, corporate vs. local redevelopment |

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Summary Takeaways

• The Venezuelan oil arrangement struck by the Trump administration is unprecedented in size and complexity, with shifting details and significant economic and diplomatic ramifications.
• The deal is structured so that the U.S. “sells” confiscated/sanctioned Venezuelan crude, holds profits in escrow, and releases them only if Venezuela’s government meets stability and security standards, all while relaxing oil sanctions as a carrot.
• The move pivots global oil trade routes—rerouting crude from China to Western markets—and introduces new uncertainties regarding U.S. intervention and foreign policy.
• The episode also provides an emotional, nuanced look at the recovery from the devastating LA fires, illustrating the interconnectedness of disaster, economics, policy, and personal resilience.

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For listeners seeking clarity on the breaking Venezuela oil story and the wide-reaching consequences of both global and local political decisions, this episode offers critical insights, candid analysis, and memorable human stories.

Transcript

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[Eamon Javers]

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[Cameron Costa]

This is Squawk Pod and I'm CNBC producer Cameron Costa. On today's episode unpacking the flow of Venezuelan oil to the United States. We start at President Trump's announcement last night of 30 to 50 million barrels of Venezuelan oil with CNBC's Eamon Javers.

[Eamon Javers]

What is this a payment for? Did the United States agree to anything on its side in exchange for this oil?

[Cameron Costa]

And then we follow with news from CNBC's Brian Sullivan who shares new comments from his White House sources.

[Brian Sullivan]

Well, that sort of implied maybe a one time assumption of that Venezuelan oil. What I am reporting right now from the White House is that that will be a continued source of Venezuelan oil.

[Cameron Costa]

So Venezuela will give oil to the United States government who will then sell it to U.S. oil companies.

[Brian Sullivan]

This is oil that would have normally been rerouted to say a China. This is previously sanctioned oil.

[Cameron Costa]

Proceeds from the sales of Venezuelan oil, well those will return to Venezuela at the president's discretion. That big news. Plus it has been one year since the devastating L A fires. MSNow senior political and national reporter Jacob Soboroff covered the disaster then and now he's written a book about it.

[Andrew Ross Sorkin]

How do you watch your childhood neighborhood carbonized in front of your own eyeballs as you are covering it live on national television.

[Cameron Costa]

It's Wednesday, January 7, 2026 and Squawkpod begins right now.

[Andrew Ross Sorkin]

Stand Becky by in 3, 2, 1.

[Eamon Javers]

Cube, please.

[Becky Quick]

Good morning everybody. Welcome to Squawk Box right here on cnbc. We are live from the NASDAQ market site in Times Square. I'm Becky Quick along with Joe Kernan and Andrew Ross Sorkin.

[Joe Kernen]

There's another bet being made and this is about whether President Trump is going to try to take over Greenland and if so, how he has those designs on the island. His announcement that Venezuela will be sending tens of millions of barrels of crude oil to the US the other big topic of the morning in Washington, bringing it over to Eamon Javors right now, who's got the latest on Greenland, Venezuela and so much more. Sir.

[Eamon Javers]

Yeah, good morning, Andrew. President Trump announced last night on social media that the interim authorities in Venezuela will send between 30 and 50 million barrels of oil to the United States. This oil will be sold at its market price and that money will be controlled by me as President of the United States of America to ensure it is used to benefit the people of Venezuela and the United States. The president said I have asked Energy Secretary Chris Wright to to execute this plan immediately. It will be taken by storage ships and brought directly to unloading docks in the United States. That from the President of the United States last night on social media. Now, it's not clear whether this is to be a one time payment or an ongoing program and who exactly the president concluded this agreement with in Venezuela. White House officials did not respond to our questions about the president's post last night. Now, separately, guys, as you mentioned, late yesterday, the White House raised the prospect of using military force to take Greenland from Denmark and make it a US Territory, a move that threatens a direct confrontation between two NATO allies for the first time in history. Now in a statement, White House Press Secretary Caroline Levitt said President Trump has made it well known that acquiring Greenland is a national security priority of the United States and it's vital to deter our adversaries in the Arctic region. The president and his team are discussing a range of options to pursue this important foreign policy goal. And of course, utilizing the US Military is always an option at the commander in chief's disposal. Now Danish Prime Minister Mette Friedrichsen Tuesday responded to this increasing belligerence from the Trump administration, saying, I believe he means it, and adding the international community as we know it, democratic rules of the game, NATO, the world's strongest defensive alliance, all of that would collapse if one NATO country chose to attack another. Now the Wall Street Journal guys reported Tuesday that Secretary of State Marco Rubio told lawmakers in a closed door session that the bellicose comments don't signal an imminent invasion, but that the administration's goal here is to buy Greenland from. Now those comments from Marco Rubio came up on Capitol Hill in that closed door session before we saw that on the record statement from Caroline Levitt raising the prospect of military Action. So you do get the sense that at least rhetorically, the White House and the State Department are not entirely on the same page here.

[Joe Kernen]

Guys, back over to you, Eamon. Let's go through both stories for a moment here. Let's go first on the oil front. Is it possible that there's an agreement with anybody in Venezuela about this oil who ultimately has to refine such oil? What would be the.

[Guest Analyst]

We refine it here, just send the oil.

[Joe Kernen]

I understand that, but the question is that we are just common.

[Guest Analyst]

We would refine it.

[Joe Kernen]

We're commandeering the oil and send it here. Yeah. And sending it here. And then we're handing it, we're just handing it to which company? To which companies who. How would this even begin to work?

[Eamon Javers]

All of that unclear, Andrew. And as I say, the White House didn't respond to my questions last night about this. One of the big sort of first principle questions is what is this a payment for? Right. Did the United States agree to anything on its side in exchange for this oil? And we just don't know that. We don't know who this agreement was struck with. Was this the now acting president of Venezuela, Rodriguez, who signed off on this deal? But do we believe it was signed off on, commit to anything in exchange for that?

[Joe Kernen]

Do we think there was a signed off deal of any sort at all?

[Eamon Javers]

We don't know. You know, we'll have to see what Venezuela has to say today. Yeah, well, you. What Venezuela has to say today. I mean you've seen this in the past with trade deals with President Trump where he has said that the other side of the transaction has agreed to things and then we just can't get confirmation from the other side that they agreed to that particular thing for days or sometimes weeks.

[Joe Kernen]

And it also suggests that, you know, that they're in agreement. If it's a payment for, for, for taking Maduro, for example, from them, that would suggest that there are people in that government.

[Guest Analyst]

She was a Maduro ally.

[Becky Quick]

Is it a payment for that?

[Joe Kernen]

That's why it doesn't make sense.

[Becky Quick]

Look, is it a payment for.

[Eamon Javers]

The question is what is it a payment for?

[Becky Quick]

Yeah, is it a payment for some of the things that were being able.

[Guest Analyst]

For her being able to stay? She's not the leader of choice, obviously, because she's still a Maduro ally.

[Joe Kernen]

This is a mafia situation. I'll let you stay if you give me oil and.

[Guest Analyst]

But let you stay. But you have.

[Eamon Javers]

That's the question. Was there an agreement by the US.

[Guest Analyst]

Guarantee free and fair elections within the next year, I think they said. Eamon John Thune, the majority leader said there's no serious talk about a military intervention in Greenland.

[Eamon Javers]

There was serious talk by the White House press secretary on the record yesterday.

[Becky Quick]

I know that that's not going to be the case.

[Brian Sullivan]

Can.

[Guest Analyst]

I don't know whether he can. That's the view I think with, in the Republican Party more than. And this could be more negotiating with a lot of bluster on the front end and really wanting to buy. But then people point out we owe $40 trillion right now. I mean, we could probably get the money to buy Greenland. The Journal says that. Why do you want it? Just you can get closer to Greenland, get everything you want without going right.

[Becky Quick]

And without military incursions.

[Guest Analyst]

You know, maybe this is just, you know, you ask the world and.

[Joe Kernen]

But if this is, if this is the case, why doesn't the White House just say this is?

[Guest Analyst]

Because they never do. You've been watching it. You had four years to watch this stuff play out the first time and now you've had another this time. Do you find it's never going to.

[Joe Kernen]

Defensible, it's never going to satisfy.

[Guest Analyst]

It's never going to be defensible for you.

[Joe Kernen]

But you just, but you're saying it's a cat for you with a cat.

[Guest Analyst]

Sooner or later when you clap, the cat just goes like this with you. It's the same reaction every time. Yes, I know. Well, eventually it's gotta be okay, otherwise.

[Joe Kernen]

It'S gonna lull you to sleep.

[Guest Analyst]

But why, when the Biden administration clapped, you were already like this.

[Andrew Ross Sorkin]

So that's what I mean.

[Guest Analyst]

That's the only difference.

[Becky Quick]

The only thing I will say is the NATO reaction. It's not a situation where you want to completely alienate your allies.

[Guest Analyst]

This is true. This is true. It's on the same tectonic plate as the United States. I mean it's really, it's not on the European state.

[Eamon Javers]

Guys, one quick question here that I really.

[Guest Analyst]

This is very old, but it does look almost like imperialistic.

[Eamon Javers]

One quick question.

[Becky Quick]

Amen.

[Eamon Javers]

Yeah, I was just going to say one, one quick question that folks raised with me. I was talking to two former high ranking US intelligence officials last night and you know, when you talk about a NATO ally attacking another NATO ally, that's the end of the NATO alliance. That's a huge division between the United States and Europe. And one of the questions that they raised with me is whether or not the US Military would follow an order by the President of the United States to attack a NATO ally in a war of territorial aggression. You know, given the questionable legality of that, would US Military leaders execute an order from the president? Remember, the US Military trains alongside the forces from Denmark in Greenland. So a lot of those folks in the US Military who are in Greenland know their counterparts in the other military very closely and have trained with them for years. Would they follow an order to then shoot those people? That's an open question here. And the fact that you're looking at that is very, very stark and dramatic. And I think the White House has really raised a whole host of big, big questions here.

[Guest Analyst]

Right. And now you sound like how many Democrats were there. Mark Kelly is dealing with the still the repercussions of saying don't follow orders from the commander in chief as well. Now we know also, Eamon, that there were deaths down in that in that operation and just apparently once again affirmed by the Trump administration, no American deaths but Cuban and 60 or so. That's in extract.

[Eamon Javers]

The report yesterday was 75, 75 extracting Maduro.

[Brian Sullivan]

Wow.

[Guest Analyst]

The new year starting out with a.

[Andrew Ross Sorkin]

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[Eamon Javers]

Cheese will be next.

[Cameron Costa]

Coming up on Squawk pod breaking from the White House. CNBC's Brian Sullivan has news on the flow of Venezuelan oil to the United States.

[Brian Sullivan]

Oil sales from venezuela to the US and the Western world will be more than 50 million barrels of oil. That was not a one time thing.

[Cameron Costa]

A big shift in the global oil trade right after this.

[Brian Sullivan]

This is all happening real time. Venezuelan sanctions will be rolled back.

[Cameron Costa]

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[Becky Quick]

We do have some breaking news on the Venezuela oil numbers. Brian Sullivan joins us for more on that. Brian, good morning.

[Brian Sullivan]

Yeah, good morning. Here we are at the Goldman Sachs Energy, Clean Tech and Utilities Conference in Miami, Florida. And I've got some breaking news from sources close to the White House. You saw the news maybe last night that the president put out on his social media that Venezuela would sell the United States 30 to 50 million barrels of oil. Well, I'm here to report that is only the first tranche, that it will continue indefinitely. So oil sales from Venezuela to the US and the Western world will be more than 50 million barrels of oil. That was not a one time thing. That was not a one time announcement that the sales from Venezuela to the United States and other Western nations will continue indefinitely. So 30 to 50 million barrels, which is roughly 15 to 25 supertankers worth of oil that will continue indefinitely. Here's some other breaking news. As part of that deal, Venezuelan sanctions will be rolled back. They will be dialed back, kind of a carrot, if you will, according to my sources over that. So in other words, Venezuela will sell the United States and the Western world sanctioned oil, oil that would have normally gone to say a China is now going to be sold or rerouted to the United States or other Western refiners that can handle the, the heavy sour crude that is Venezuela. The proceeds from those sales will largely go back to Venezuela or the United States. But the breaking news is that we're going to have more than 50 million barrels of Venezuelan oil by far sold, that that oil will be sold to the United States and Western nations and some of that money will be put back into Venezuela. We're not, we're confused.

[Becky Quick]

I mean that's, that's a different story than we thought to this point where it was going to be breaking some given to the United States, given to.

[Guest Analyst]

Us and then we are going, we were going to sell it the money.

[Becky Quick]

What do you know that.

[Brian Sullivan]

So this is, yes, this is, this is all happening. This, yes, this is all happening real time. This is breaking news. I don't believe it's out anywhere else. I'm here to report it. Sources close to the White House, I just off the phone minutes ago are telling me that the United States is going to acquire more than 50 million barrels of oil. That is the first tranche as part of that deal. Long term deal. Venezuelan sanctions. It's not out anywhere else. Venezuelan sanctions will be rolled back. This is happening right now.

[Joe Kernen]

My sources understand is there's a negotiation. This is part of a negotiation. Who has negotiated this deal on the Venezuelan side? Are we. How is this even.

[Guest Analyst]

They said we were getting this. The President said we were. They were giving this oil to us and we were going to sell it and then the proceeds were going to be used to help Venezuela and the United States. This is. This is them selling to the United States and other countries sanctioned oil. This is completely different. Are they, are they fixing that story, Brian? Because it was a weird story. We were talking about it earlier that. Why is it, was it blackmail that they're giving us that it was.

[Becky Quick]

Or was it to make up for assets that have been seized?

[Brian Sullivan]

I don't want to use. Yeah, I've got all three of my good friends talking at the same time. Let me take one question at a time. First to Joe. First the. Joe, the story is evolving. I don't want to say fixing the story. What we saw from the President last night, 30 to 50 million barrels of oil that sort of implied maybe a one time assumption of that Venezuelan oil. What I am reporting right now from the White House is that that will be a continued source of Venezuelan oil. I don't know the price at which we will acquire that oil, whether it will be given to us or whether we will simply buy it at a discount. There's not many refineries that can accommodate this heavy crude, sour oil. But this is oil, and I think Becky mentioned this. This is oil that would have normally been rerouted to say a China. This is previously sanctioned oil. Remember, about one third of Venezuelan oil, not all Venezuelan oil, about one third is sanctioned. This is the sanctioned oil that would have gone to China or another nation that is now going to be rerouted to the US or the Western world. The proceeds will be put largely back into Venezuela for the benefit of the Venezuelan people and help rebuild some of their capital infrastructure.

[Becky Quick]

So, Brian, here's what I'm kind of reading on this. If this is the case, if they are now saying that we're going to be getting all the oil that used to go to China, this almost sounds like it's a tit for tat with China saying we're not going to give you any more access to rare material or rare earths. And now we're trying to Fix that.

[Guest Analyst]

That.

[Becky Quick]

But this is a, this is a global play for major resources and commodities that are. That are here as part of all of this. But it sounds like from what you're hearing is those sales will simply be made to us and to other of our allies versus going to China. And we don't know exactly what the price is for those. But this is not something like getting our money back for anything that's been taken for from US assets in the past when they nationalized all those assets.

[Brian Sullivan]

Yes, I'm going to. I'm going to give you some more details because I want to get it right here on what sources close to the White House just sent to me. The United States is selectively rolling back sanctions to enable the transport and sale of Venezuelan crude and oil products to global markets. Those funds will be dispersed for the benefit of the Venezuelan people. The sales begin immediately with the anticipated sale of 30 to 50 million barrels. They will continue indefinitely. There is no mention of price. What price that oil, whether it's to Joe's point, sort of given to us free, we thought. Apologies for the noise behind us.

[Guest Analyst]

The implication initially was that for some reason they were giving the United States 30 to 50. And Andrew rightly pointed out this makes sense. That's impossible. This makes no sense. It would have to be in repayment for something or. But that's what stay in power. It brought up all kinds of quid pro quo with whether Delsey made the deal so she could remain in power. I mean, it brought up all kinds of. It's totally different if they're just freeing up what they used to sell to China and now selling it to us and to other Western nations. That's totally different than getting 50 million barrels of free oil and using $3 billion.

[Brian Sullivan]

I will say this 100%. You asked me for specific names on who the US is making this deal with. I do not have Adelsea Rodriguez. What I do have are interim Venezuelan authorities. This deal is being made between the United States Department of Energy and interim Venezuelan authorities. The breaking news. We're going to reroute that sanctioned. That's key. Sanctioned oil.

[Joe Kernen]

Right.

[Brian Sullivan]

And it will be more than 50 million barrels a day.

[Joe Kernen]

Real quick, by the way, Brent, down marginally right now, but. But more importantly, you think about the companies that can refine this oil and to the extent this is an opportunity for them, maybe we can put some of the big energy stocks up on the. Up on the.

[Brian Sullivan]

Valero would probably pop on this news again.

[Joe Kernen]

That's what I was going to Ask.

[Brian Sullivan]

About in real time. I don't think. I don't have any computers or anything around me.

[Becky Quick]

All right, let's just take an intraday of Valero real quickly.

[Andrew Ross Sorkin]

Take a look at.

[Joe Kernen]

You're looking at Valero.

[Andrew Ross Sorkin]

It is right?

[Joe Kernen]

It's up by 3.3%.3% Marathon Petroleum up about a percent if I remember Elliot Elliott Management. Part of would be the two things. Was one of the companies that actually can refine some of this stuff, the subsidiary of Zip Go.

[Brian Sullivan]

Elliott Management's in a proxy fight with Philips 66 but Valero PSX, Phillips 66 to a lesser extent some of the other refiners would be. I'm going to have more. Listen, Chris Wright's about ready to speak here at the Goldman Sachs Energy Clean Tech and Utilities Conference. I'll get more headlines. We have them. This is breaking news and we're going to be interviewing the secretary of interview exclusively in Power Lunch live. Live today in the 2 o' clock hour. Although maybe it'll happen earlier now. I don't know.

[Becky Quick]

Okay, Brian, this is a fantastic thank you for bringing all of this to you and we look forward to hearing that interview later and getting more details on this. Again, Brian Sullivan who is live at the Goldman Sachs Energy conference and will be talking to the energy Secretary later today.

[Joe Kernen]

When we get back to Brian Sullivan who just broke that story about what's taking place between the White House and Venezuela as it relates to this oil situation. Brian?

[Brian Sullivan]

Yeah, because the White House watching our reporting just a minute ago and sources close to the White House letting me know that they wanted to not clarify anything but just add some color to some of the questions that you had. I'm going to take my phone, you forgive me here, and throw it across the room. There we go. The oil will be given to Joe's point, given to the United States. We will not buy the oil, but we will sell the oil. The proceeds of that money will then be kept in various American banks. I do not know which banks they will be kept in. Maybe it will be dispersed around a bunch of American banks. The proceeds of those sales, which as I just reported will be over 50 million barrels, the proceeds will be kept in American banks. And then when the President and his team deem that the Venezuelan government and infrastructure is ready and stable and secure enough to receive some of those funds, they will receive those funds back into Venezuela for the benefit of the Venezuelan people. So in other words, it's kind of the carrot. We're going to get oil from Venezuela. We will Sell it market. It is the term around the world. Those funds will be kept by the United States, held in various American banks, and then dispersed largely or entirely back to the Venezuelan people for their use once it is deemed that the country is stable and safe enough. And as part of that, as I reported earlier, the sanctions will be rolled back.

[Joe Kernen]

Part of.

[Guest Analyst]

Yeah. And it goes back to Venezuela. It doesn't go from that. I don't. It doesn't. It's not for the American people, but I guess indirectly it's good for commerce.

[Brian Sullivan]

But it will sit in American banks.

[Guest Analyst]

Right. But the proceeds go back to Venezuela.

[Becky Quick]

But it sounds like they are working on a way to try and root out the corruption and make sure that it's being spent on infrastructure projects going. Yeah, you don't want to send a.

[Brian Sullivan]

Billion dollars potentially being held back to Venezuela.

[Becky Quick]

We want to make sure we approve of this government.

[Joe Kernen]

Yeah, but the thing that I'm trying to understand, Brian, and maybe you can help us with this, this is ongoing. So it's not just a one time scenario. We will be getting effectively free oil from Venezuela. How much free oil are we going to be getting for the foreseeable future? And then how is it priced?

[Brian Sullivan]

30 to 50 million. 30 to 50 million. So it's going to be priced on the global market price. So let's just, let's just do some very rough math. The first tranche, which is happening now, 30. 30 to 50 million barrels, as the President put out last night, call it $50 a barrel. I'm making the number up roughly on the, on the wholesale market. That's $2 billion. Okay, $2 billion. We will continue 30 to 50 million barrels in perpetuity. There is no end date. So it could be 100 million or 200 million or a billion barrels of oil. Whatever that oil is sold for on the market will come into American banks. American banks will sit on that money until the Venezuelan government is deemed to be secure enough, stable enough, safe enough, and to Becky's point, sort of free from fraud enough that some of that money can be put back into Venezuela for the benefit of the Venezuelan people. And as part of this deal, sanctions on that Venezuelan oil will be rolled back. Kind of the carrot will lift the.

[Becky Quick]

Sanctions if you let us sell it and hold on to the proceeds until we deem the government as one that will safely use.

[Guest Analyst]

Brian, does it go to the treasury first? We'd have to go to the treasury first, I think, and then go, go to the banks. That's what I'm hearing. From. From budget type.

[Brian Sullivan]

We get a finance fee. I don't know the answer to that.

[Joe Kernen]

Does it.

[Guest Analyst]

Do we get anything out of it A finer fee or do we I.

[Becky Quick]

Hope we don't or that's going to.

[Guest Analyst]

Yeah I know that that wouldn't work. This would work.

[Brian Sullivan]

Well we're getting. We're getting the oil. Yeah to your point we're getting. We're getting the oil. So the finders fee effectively would be the sale of the price of oil. Now whatever price that would deem I assume it's going to be the fair market value around the world but then it goes a lot of. Again you're asking. You're asking all the right questions. This is why you guys are the best of the business. There are some unanswered questions at this point. Obviously throughout the day here I will do my best to acquire said answers.

[Becky Quick]

And you Energy secretary coming up and he can clarify all of that as well.

[Guest Analyst]

So the true social posts were all right is actually but it's. We didn't realize that it meant most of the proceeds eventually go back to Venezuela. That not. We're not going to.

[Becky Quick]

I mean that makes more sense.

[Andrew Ross Sorkin]

Yeah I hope it does.

[Brian Sullivan]

It's yes. Some. I don't know if it's all or some of the proceeds but I appreciate our entire team for letting me hop on a plane last night and come down here guys.

[Cameron Costa]

Thank you Brian.

[Eamon Javers]

Thank you.

[Becky Quick]

And we'll be watching later.

[Cameron Costa]

Next up on squawk pod the L A fires one year later. MSNow senior political and national reporter Jacob Soboroff covered the disaster live on TV and he's now written a book about the devastation and the recovery.

[Andrew Ross Sorkin]

16,000 structures were destroyed. 31 people were killed. An area three times the size of Manhattan burned down in what is now the costliest wildfire event in the history of the United States of America.

[Cameron Costa]

Plus the personal side of his story right after this.

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[Cameron Costa]

This is Squawk Pod.

[Becky Quick]

Welcome back, Everybody. It is 8am on the East coast and you're watching SquawkBox right here on CNBC. I'm Becky Quick along with Joe Kernan and Andrew Ross Sorkin.

[Joe Kernen]

Today is one year since the devastating Los Angeles fires began. They destroyed thousands of homes, 40,000 acres and killed more than 30 people. Joining us right now is Jacob Soborough, Ms. Now senior political and national reporter, and he's the author of a new book. It's called Firestorm, the Great Los Angeles Fires in America's New Age of Disaster. You were there on the ground all this was going on and you spent the last year writing about it. We all watched this with some trepidation and terror for so many families and people who lost homes. And we've all now, a year later, trying to understand, as you just asked, do we know people who lost home?

[Andrew Ross Sorkin]

Everybody knows somebody. Everybody loves somebody. Thank you guys for having me, by the way.

[Joe Kernen]

But where I was going to go with this is a year later. It doesn't feel like from an economic perspective, people are rebuilding.

[Andrew Ross Sorkin]

They're not even close.

[Guest Analyst]

You ask, do we know anyone who lost home? Do we do you know anyone who has rebuilt their home?

[Andrew Ross Sorkin]

No. And how about, how about people whose home survived and will still not move back into their homes because they're worried about the environment, environmental conditions, including my own little brother who lost the house that he was living in with his wife and, you know, soon to be born baby? And I think people are terrified about the circumstances. I just read a study that said 40% of the lots that were sold at the end of last year went to corporate investors, not to locals. I think that people are having a really hard time. L A is the most unaffordable city in the nation and the most unaffordable state in the nation. And after this, you know, catastrophic wildfire, people can't, they're not opening up their wallets to say we're going to pay double or triple what I, what I thought.

[Joe Kernen]

That's interesting.

[Brian Sullivan]

Corporate.

[Joe Kernen]

So corporate investors are the ones that.

[Andrew Ross Sorkin]

Are buying that, that end in the palaces. I grew up, you know, equidistant or I grew up in the palaces, but I now live equidistant between Altadena and the Palestine. 16,000 structures were destroyed, 31 people were killed. An area three times the size of Manhattan burned down in what is now the costliest wildfire event in the history of the United States of America. We don't know that officially because the federal government stopped keeping track of that stuff. But, but private entities are doing that. It's why I wanted to write the book because how do you, you know, how do you watch your childhood neighborhood carbonized in front of your own eyeballs as you are covering it live on national television? I did not understand any of these ramifications at the time. I didn't think that this would, the economic impacts of this would be so severe. Even the rebuilding effort has been stymied by immigration policy in California in some measure, according to the governor.

[Becky Quick]

Explain that.

[Andrew Ross Sorkin]

Well, this is also the, I think so often, and you read in the book when these events happen, I think it exposes sort of the fissures in our society, how hard it is to afford a life in California that we have the largest undocumented population and they are a major part of the workforce in Southern California. I think 10% of the people in LA county are undocumented. And so the ICE policies have been largely targeting people that work at Home Depots in L. A not the so called worst of the worst that the administration says that they're going after. So it's directly targeting some of the people who are engaged and historically would be engaged in homebuilding in Los Angeles. And I talked to Governor Newsom the other day and he's, you know, not surprisingly saying he's worried about that.

[Joe Kernen]

When you think though about the families that have lost their homes, what's happened economically in terms of their. Where are they living? How did insurance or not pay for things?

[Andrew Ross Sorkin]

Insurance is a nightmare for so many people, especially people whose homes survive but they can't move back because of the conditions around.

[Joe Kernen]

It's almost worse to have a home that survived, right?

[Andrew Ross Sorkin]

Premiums are going up for people. People are losing their policies altogether. And I think that people have no idea what to do, which is why they're turning to not their neighbors to sell or not able to buy another lot somewhere else themselves, but selling to whoever's coming in at whatever price and that prices are plummeting in all these neighborhoods.

[Guest Analyst]

Is it a red tape nightmare? Blaming it on, on the mayor, Karen Basser, blaming it on Gavin Newsom? Where could it be better? Could things be much better?

[Andrew Ross Sorkin]

Of course. Of course it could. So 16,000 again, 16,000 structures destroyed. I think about 3,000 permits have been issued for rebuilding within the first year. Newsom will argue and I think when he runs for president, if he runs.

[Guest Analyst]

For president, when he on Drudges frontrunner, there's a big picture of him on Drudge with what's. And it's what's, what's gas out there. $5 a gallon, I thought was a buck 80 somewhere.

[Andrew Ross Sorkin]

Think about, think about what people and by the way, I don't blame anybody for looking at politicians and saying, you know, who's to blame for losing my house? Then could it have been preventable?

[Guest Analyst]

But is it, is it accurate?

[Andrew Ross Sorkin]

There's no proximate cause. And I think when you read the book, you'll see I sat down with emergency. I'm not an emergency management official. I'm not a climate scientist. I'm not a wildlife biologist. You know, all the things that were affected by this.

[Joe Kernen]

But you feel like you dive deep on a read on what really?

[Andrew Ross Sorkin]

Definitely. Yes, definitely.

[Joe Kernen]

That's what the book does.

[Andrew Ross Sorkin]

And that's. So I spent time with all of these folks and what I learned is there's not one proximate cause for events like this. In America's new age of disaster, there are many. There was a spark in the Palisades and an arsonist started the original fire that became the holdover fire that became.

[Guest Analyst]

Where was the water? Yeah, like the movie Chinatown.

[Joe Kernen]

It was diverted.

[Andrew Ross Sorkin]

Million gallons were not in the San Yanez Reservoir in Altadena Fold. Electrical equipment from SoCal Edison allegedly sat there on unused power lines and were electrified. What are we doing with infrastructure? So infrastructure changes in the way we live. Thousands of electric car batteries were exploding in those fires. Obviously climate, but also, you know, misinformation and disinformation coming from all political parties during the fires was confusing to people that it hurt them during the fire and it's hurt the recovery afterwards.

[Joe Kernen]

If we're all together five years from now, what do you think Palisade is going to look like?

[Andrew Ross Sorkin]

I don't know. I don't know. I think A lot of people would like it to look more like the new development that has been there in the last 10 years. I think a lot of people who grew up there and have lived there forever would like to see it return to the small ranch style homes and affordable coastal enclave that it once was. I don't think it'll be either. I think it'll be somewhere in between.

[Joe Kernen]

But it's the corporate investors building or they're just buying the lots?

[Andrew Ross Sorkin]

No, no, they're building and I think so. I went back. One of the things you'll read about in the book is that it's about people for me as much as it is about the economics or the politics of it. Kate Hennigan JPL engineer 200 to 300 Caltech and JPL engineers lost their houses in the fire in the Altadena area because that's where they all live. Herb and Lloyd Wilson employees that worked at UPS for 30 years and met and married there. They live on a Street called McNally Avenue. It's the street I interviewed Newsom on for Meet the Press on the Saturday after the fire. Every house but one is gone. And the only houses that are coming back look like they're corporate developments style, basically out of a box houses. It's not the character of the neighborhood that people once knew. And I think that's also going to be a challenge for people wanting to come back. And the workers that are going to try to come back to these neighborhoods, they've all lost their jobs as well.

[Guest Analyst]

Altadeen is nothing like the Palisade, but probably still costs a couple of million dollars for a house even in Altadena.

[Andrew Ross Sorkin]

Oh yeah, of course it does. Of course it does. And I think that the people that live in Altadena need those houses just as much, if not more.

[Guest Analyst]

I used to live in the people in the Montrovy friends in Altadena.

[Andrew Ross Sorkin]

That's where my mother in law lives in Monrovi.

[Guest Analyst]

Yeah, yeah. And it doesn't look like a $2 million house, but it is.

[Andrew Ross Sorkin]

That's life in L. A. That is. That's life in L. A. And so when you think about the workers, I mean, those are the other people that I think about too. You'll meet in the book Albino Fuentes, who worked first at Mort's Deli in Pacific Palisades, the deli I went to growing up as a kid and now at Cape Vita, another restaurant in the Palisades we're talking about.

[Joe Kernen]

And where are they?

[Andrew Ross Sorkin]

Tens of thousands having to find other jobs. The people, people that lay their heads in these communities at night are just as affected. And if you don't think that's affecting the economy, which also the entertainment industry entered, everybody's leaving Los Angeles. And in the immediate aftermath of the fires, it hurt production even more. You don't think that's going to hurt people coming back as well? People need a place to live, they need a place to work, they need a place to stay. And there are major challenges still coming back now.

[Guest Analyst]

Netflix. Yeah, exactly.

[Andrew Ross Sorkin]

This is just the tip of the iceberg. But I hope you guys like the book and I hope you guys read the book because it goes into all of these different things and more than anything, it's a deeply, deeply personal story for me. Thank you. Having gone through this as a reporter, no reporter is equipped even traveling to all the places I've been, Ukraine, Haiti, you know, Guatemala, Greenland. To watch your brainless hometown. Truly Air Force base. Can I be your next correspondent, Jacob?

[Joe Kernen]

Sober off. The book is called Firestorm. Go out and get it. Thank you for coming.

[Andrew Ross Sorkin]

I really appreciate you guys. Thank you.

[Joe Kernen]

Thank you.

[Andrew Ross Sorkin]

Thanks for having me.

[Cameron Costa]

That's the podcast for today. Thank you for listening. Squawk Box is hosted by Joe Kernan, Becky Quick and Andrew Ross Sorkin. Weekday mornings on CNBC from 6 Eastern all the way to 9. To get the best bits of that three hour TV show right into your ears in around 30 minutes. You can follow Squawk Pod wherever you get your podcasts. We'll meet you right back here tomorrow. Have a great day.

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