Hours after U.S special forces captured Venezuelan leader Nicolas Maduro, President Donald J. Trump revealed his plans for the world’s largest oil reserves.
Trump is going to send U.S. oil companies into Venezuela to rebuild their system, calling it the “greatest theft in history.”
From 2005 to 2022, the U.S. had sanctions on Venezuelan oil. They were narrowly lifted to allow Chevron to resume oil production in Venezuela after Russia invaded Ukraine. Currently, Chevron is still the only U.S. oil company in operation in Venezuela.
History of US Takeovers in Oil-Rich Countries
After the U.S. invaded Iraq and Suddam Hussein was overtaken in 2003, it took six years to rebound in oil production. In 2009, Prime Minister Nouri al-Maliki invited oil companies to purchase license and production resumed.
In 2024, Iraq rose as the second-highest crude oil producer in the Opec oil cartel. In recent years, however, political instability and water shortages have caused major oil companies to pull back.
After Libyan dictator Muammar Gaddafi was killed in 2011, oil production did not recover. Political turmoil has kept in in fluctuation for more than a decade. Currently, Libya is run by two separate governments and uses its dominant source of income, oil production, as leverage in conflicts.
History does not support Trump’s belief of a significant increase in oil production within 18 months due to the U.S. oil companies investing and rebuilding Venezuela’s system. However, Trump continues to make moves to support this idea.
Actions Attempting to Force Outcome
On Wednesday, Jan. 7, 2026, the U.S. seized a Russian-flagged Venezuela-linked oil tanker in the Atlantic Ocean. The vessel was empty, but Trump is eager to dictate the flow of oil production and force the South American country to become an ally.
Deputy White House Chief of Staff, Stephen Miller, stated on social media, “The only maritime energy transport allowed will be that consistent with American law and national security. There is unlimited economic potential for the Venezuelan energy sector through legitimate and authorized commercial avenues established by the United States.”
The Trump administration is attempting to broker a deal with Venezuela to divert supplies intended for China for $2 billion in crude oil. China is the South American country’s biggest buyer.
Chinese Foreign Ministry spokesperson, Mao Ning stated in a press conference, “The United States’ brazen use of force against Venezuela and its demand for ‘America First’ when Venezuela disposes of its own oil resources are typical acts of bullying.”
Trump said the United States plans to refine up to 50 million barrels of crude oil under a blockade he put in place. The U.S. President posted on social media the oil will be sold at market price and he would control the money to ensure it benefits Venezuela and the United States.
Reuters reports their sources at PDVSA says negotiations have progressed, however, no official comment has been made by the Venezuelan government.
World markets saw a fall in oil prices in anticipation of increased supplies released by Trump’s plan. Russia, China, and other leftist allies have denounced the raid by the U.S. to capture Maduro. This operation was the largest intervention in Latin America since the invasion of Panama in 1989 to bring down Manuel Noriega. Allies of Washington are also uneasy concerning the seizing of a foreign head of state especially with Trump threatening more action in other areas concerning interests in the name of the United States.
Currently, Venezuela and its oil remains in power under Acting President Delcy Rodriguez.
By Jeanette Vietti
Sources:
The Guardian: Trump claims Venezuela is set for an oil boom after US attack – history points to a bumpy road ahead
Politico: Trump’s Attack on Venezuela Could Change the World. Here’s How.
Reuters: Trump’s plan to take Venezuelan oil angers China, pushes prices down
Featured Image Courtesy of Timothy Vollmer’s Flickr Page – Creative Commons License
