U.S. Intervention in Venezuela Puts Spotlight on Energy and Oil Reserves
The United States’ sudden military action against Venezuela has triggered one of the most dramatic geopolitical shocks in the region in decades. President Donald Trump said U.S. forces had captured Venezuelan President Nicolás Maduro and that Washington would temporarily “run” the country until what he described as a “safe, proper and judicious transition” could take place.
Venezuela has declared a national emergency, condemning the move as “extremely serious military aggression,” while international concern has mounted over the legality and implications of the intervention. Maduro, who has previously denied accusations of leading a drug cartel, has been indicted in New York on drugs and weapons charges — a case the Trump administration has repeatedly cited as justification for action.
Beyond the immediate political and security fallout, the episode has placed renewed attention on Venezuela’s vast energy resources and their role in shaping the country’s future. Speaking at a news conference, Trump said the U.S. would deploy major American oil companies to rebuild Venezuela’s damaged energy system, saying they would “spend billions of dollars, fix the badly broken infrastructure — the oil infrastructure — and start making money for the country.”
At the same time, Trump made clear that pressure on Caracas would continue. He said the U.S. embargo on Venezuelan oil remains fully in effect and that American military forces remain in position until U.S. demands are met. The comments echoed earlier remarks made in December, when Trump said Venezuela had taken U.S. oil rights, expelled American companies, and that the U.S. now “wants it back.”
Venezuela’s strategic importance in energy terms is substantial. The country holds the world’s largest proven oil reserves, estimated at around 300 billion barrels, representing close to a fifth of global totals. Most of those reserves are located in the Orinoco Belt and consist of heavy and extra-heavy crude, which is more technically complex and costly to extract than lighter oil grades.
Despite that vast resource base, Venezuela’s oil industry has been in prolonged decline. Crude production has fallen from more than three million barrels per day at its peak to around one million barrels per day or less in recent years. Refineries, pipelines, and export terminals have deteriorated after years of underinvestment, sanctions, and loss of technical capacity, leaving the sector operating far below its potential.
Oil is not Venezuela’s only natural asset. The country also holds large natural gas reserves and significant deposits of minerals including iron ore, gold, and bauxite. Even so, hydrocarbons remain central to its economy and to the international interest now surrounding its future.
For global energy markets, the immediate impact of the U.S. action has been limited, reflecting Venezuela’s relatively low current output. Over the longer term, however, any sustained change in governance or control of Venezuela’s energy infrastructure could reshape regional supply dynamics, particularly if foreign investment and technical expertise return at scale.
Trump’s emphasis on oil has intensified debate over the role energy plays in U.S. policy toward Venezuela. Administration officials frame the intervention as focused on security, criminal accountability, and political transition, while critics argue that repeated references to oil risk reinforcing perceptions that access to resources is a central factor.
Much remains uncertain, including how long the U.S. intends to remain involved, how a political transition might unfold, and how Venezuela’s energy assets would ultimately be governed. What is clear is that oil — long both a source of wealth and vulnerability for Venezuela — is once again central to the country’s fate. Whether those resources become a foundation for economic recovery or another source of instability may help determine not only Venezuela’s future, but its place in the global energy system.