Venezuelan President Nicolás Maduro claims that the recent US pressure on his country is driven by one goal: control over Venezuela’s massive oil reserves.
The situation escalated this week when US forces seized an oil tanker allegedly carrying Venezuelan crude in violation of sanctions and warned other vessels of potential action. These measures follow earlier US military strikes on Venezuelan ships accused of drug trafficking. President Donald Trump has repeatedly urged Maduro to step down, accusing him of sending drugs and criminals to the United States.
But is Trump really after Venezuela’s oil? Would it even make sense from an economic perspective?
Venezuela indeed boasts the world’s largest proven oil reserves, estimated at 303 billion barrels. However, current production is far below its potential.
Oil output has dramatically declined since the early 2000s. Former President Hugo Chávez and Maduro’s administration heavily centralized control over PDVSA, the state oil company, causing a mass departure of experienced staff. While some Western firms, including Chevron, still operate in the country, their activities have shrunk due to sanctions restricting oil exports and foreign investments.
Sanctions, first introduced in 2015 under President Obama over human rights concerns, have further isolated Venezuela from the global market. According to the International Energy Agency, Venezuela’s oil production in November was about 860,000 barrels per day—less than a third of what it produced a decade ago and under 1% of global consumption.
Some US politicians see Venezuela’s oil industry as a potential opportunity for American companies. Florida Republican Congresswoman María Elvira Salazar recently said, “American firms could overhaul oil rigs and pipelines, benefiting greatly from the resources.”
