Oil is the main reason for Venezuela invasion
Posted on Jan 06, 2026 / World
Trump makes no secret of the fact that oil is the key reason for Maduro's overthrow and the US's desire to subjugate Venezuela. And what exactly is he counting on?
Following the lightning-fast operation to capture Venezuelan President Nicolás Maduro, Donald Trump demanded that the country's authorities allow US companies into the local oil market. Whether this pressure will produce results remains to be seen. But investors clearly believe Washington's threats are effective: shares of American oil giants have been rising in recent days. Their return to the country with the richest proven reserves of raw materials could indeed revive an industry that has deteriorated in isolation from Western technology. However, this won't happen quickly: Venezuelan industry requires large-scale investment and a favorable external environment, which may only arrive in the next decade. We explain the US interests, the barriers it must overcome, and why China and Russia could suffer from growing American influence in the region.
Donald Trump is undeniably showing a new political sincerity. Almost immediately after the operation to overthrow Nicolás Maduro, the US president openly stated his key interest in the "decapitated" Venezuela: "We plan for major American oil companies <…> to invest billions of dollars [to] repair [Venezuela's] badly damaged [oil] infrastructure and start making money for [their] country." As The Economist notes, this statement carries a "sweet taste of revenge" for Washington. US companies' involvement in Venezuela's oil industry has a century-long history: during this time, they have both enjoyed a virtual monopoly on the local market and, conversely, have been the main victims of the protectionist policies of the Latin American country's government. The final powerful blow to their position came from the "founding father" of the current ruling regime, Hugo Chávez: in 2007, the oil assets of investors from the US and other Western countries who objected to the transfer of control of their Venezuelan enterprises to the national conglomerate PDVSA were simply expropriated. Over the next nearly two decades, this resulted in a flurry of lawsuits in US and international courts for Venezuela, demanding compensation totaling nearly $60 billion. And just over two weeks before his lightning-fast invasion, Trump explicitly stated that Caracas, to avoid escalation, must immediately return "all oil, land, and other assets stolen" from the US.
What is the US's interest—and what problems will investors face?
There's a truly significant prize at stake. But to reap it, the effort Trump speaks of must be truly exerted. Almost complete isolation from advanced technologies, a lack of investment, and ineffective "national" governance have led to the degradation of Venezuela's oil industry. Today, the country produces approximately one million barrels per day (only about 1% of global supply)—roughly two-thirds less than in the late 2000s, when Chávez ousted the Western "colonialists" from the market. Experts predict that restoring this figure to at least previous levels could enrich both Venezuela itself and foreign investors. The potential for growth is significant: despite its modest current production scale, the country still possesses the world's largest proven oil reserves, over 300 billion barrels—a fifth of global totals.
American refineries are particularly interested in developing these reserves, as they specialize in the heavy, high-sulfur crude that Venezuela is rich in. Today, crude oil from Canada provides the bulk of the country's oil supply, but supplies from the neighboring country are under constant risk of deteriorating bilateral relations as part of Trump's trade war.
A full-scale revival of the Venezuelan oil industry will likely take years. In the near term, oil production may even decline, and this is partly a consequence of Trump's policies.
Since December, Washington has been blocking crude exports from the Latin American country via tankers subject to US sanctions. As a result, Venezuelan oil exports have sharply declined, and the volume of oil aboard idle vessels has reached multi-year highs. After Maduro's overthrow, a flotilla of 15 loaded tankers launched a desperate attempt to break the blockade, but this is unlikely to solve the problem systemically.
Please share the link with friends and neighbors:
Also! Recommended for you:
Protests in Iran: Dozens Dead and Over 1,200 Detained© 2026 City maps and famous places