At a Glance
- Trump says removing Maduro will unlock Venezuela’s 300 billion-barrel oil reserves, reshaping global energy.
- US oil firms plan to invest billions to rebuild decades-old infrastructure.
- China condemns the move, warning it violates international law and threatens regional stability.
- Why it matters: It could shift global oil supply, affect prices, and heighten geopolitical tensions.
After a raid that removed Nicolás Maduro, President Donald Trump announced that the United States will tap Venezuela’s vast oil reserves, promising massive investment and a reshaping of the global energy market.
Trump’s Oil Vision
President Donald Trump said Saturday that removing Maduro will open the door to the country’s vast oil reserves. He added that the United States’ largest oil companies would go in, spend billions, fix the broken infrastructure, and start making money for the country.
- US oil firms will invest billions in Venezuela.
- Infrastructure repairs are needed to restore production.
- The plan could make Venezuela a major oil exporter again.
Military Raid and Political Fallout
The comments came hours after U.S. armed forces and law enforcement captured Maduro and struck parts of Caracas. Defense Secretary Pete Hegseth praised the operation.
Defense Secretary Pete Hegseth stated:
> “Our adversaries remain on notice: America can project our will anywhere, anytime.”
- Maduro and his wife were arrested.
- The raid targeted key areas in Caracas.
- The U.S. signals readiness to act globally.
Oil Reserves and Technical Challenges
Venezuela’s oil reserves are the largest in the world, with about 300 billion barrels, according to the Energy Institute. The reserves are concentrated in one region and are mostly extra-heavy crude.
| Metric | Venezuela | Saudi Arabia |
|---|---|---|
| Reserves (billion barrels) | 300 | <300 |
Restoring production to 1990s levels would require over $8 billion in investment, according to PDVSA estimates. Extra-heavy crude demands higher technical expertise, which has been limited by sanctions.
US Involvement and Sanctions
Chevron is the only U.S. oil company operating in Venezuela under a limited license from the Trump administration. More companies would likely need to enter under a broader plan.
Chevron spokesperson said:
> “Chevron remains focused on the safety and wellbeing of our employees, as well as the integrity of our assets. We continue to operate in full compliance with all relevant laws and regulations.”
- Sanctions have weakened Venezuela’s economy.
- PDVSA remains the largest revenue source for the Maduro government.
- Infrastructure is more than 50 years old.
International Reactions
China’s Ministry of Foreign Affairs condemned the U.S. action.
China’s Ministry of Foreign Affairs responded:
> “Such hegemonic acts of the U.S. seriously violate international law and Venezuela’s sovereignty, and threaten peace and security in Latin America and the Caribbean region. China firmly opposes it.”
- The move could inflame U.S.-China tensions.
- China is Venezuela’s top oil customer.
- Market impact remains unclear as crude oil trading resumes Sunday evening.
Key Takeaways
- Trump’s plan could unlock 300 billion barrels of Venezuelan oil.
- US investment would rebuild infrastructure but faces technical and sanction hurdles.
- China’s condemnation signals potential geopolitical friction.
The raid and Trump’s statements signal a new chapter in U.S. involvement in Venezuelan oil, with significant economic and diplomatic implications worldwide.
