Over the course of a single night, global politics and energy economics appeared to enter uncharted territory, as Venezuela — holder of the world’s largest proven crude oil reserves — was abruptly placed at the center of an extraordinary projection of American influence.
With an estimated 303 billion barrels of proven reserves, Venezuela’s vast oil wealth has long been recognized as strategically significant. That reality took on new urgency after a U.S.-led operation resulted in the capture of Venezuelan President Nicolás Maduro and his wife, Cilia Flores, followed by President Donald Trump’s declaration that the United States would be “very strongly involved” in the country’s oil sector. The statement reverberated across energy markets and diplomatic capitals around the world.
At roughly $57 per barrel, Venezuela’s reserves are valued at about $17.3 trillion. Even at a steep discount — half of current market prices — the oil would still be worth nearly $8.7 trillion, exceeding the total economic output of every nation except the United States and China, and dwarfing Japan’s GDP by nearly four times.
Trump outlined his vision during a December 3 press conference, describing a U.S. role that would extend beyond security into direct economic management. He said major American oil companies would enter Venezuela, commit billions of dollars to rehabilitating what he called the country’s “badly broken” oil infrastructure, and restart large-scale production.
“We’re going to have our very large US oil companies — the biggest anywhere in the world — go in, spend billions of dollars, fix the oil infrastructure, and start making money for the country,” Trump said. “We’re in the oil business. We’re going to sell it to them.”
Under the plan Trump described, U.S. companies would front the costs of rebuilding Venezuela’s oil facilities, with future oil revenues used to repay those investments.
“The money coming out of the ground is very substantial,” he said. “We’re going to get reimbursed for everything that we spend.”
Trump also revealed that U.S. forces had been prepared to launch a second, larger military operation if circumstances demanded it, though he said that step was not ultimately required. He made clear that he was not ruling out American troop deployments.
“We’re not afraid of boots on the ground. We’re going to make sure the country is run properly,” he said.
For decades, Venezuela’s oil has represented both immense promise and persistent peril. Despite its unmatched reserves, the country’s production collapsed amid sanctions, corruption, underinvestment, and political instability. Aging infrastructure and the mass departure of skilled workers reduced output to a shadow of its former capacity, leaving what should have been an energy powerhouse mired in economic ruin.
Trump’s remarks point to a sharp break from that decline, with Venezuela potentially administered by the United States alongside a “group” of partners for an extended period. Under that model, oil revenues would underwrite governance, reconstruction, and economic recovery.
The scenario has reignited long-simmering debates over sovereignty, intervention, and control of natural resources. Critics argue the move risks resurrecting the legacy of U.S. interventionism in Latin America, while supporters contend it reflects a new era of energy geopolitics, where access to strategic resources eclipses traditional diplomatic constraints.
Should U.S. firms succeed in reviving Venezuela’s oil production, the consequences for global energy markets could be far-reaching. A surge of Venezuelan crude could disrupt OPEC’s internal balance, exert downward pressure on prices, and reshape the strategic calculations of major producers including Saudi Arabia and Russia.
Beyond oil markets, the sheer magnitude of the resource now at stake is difficult to overstate. Trillions of dollars in reserves — exceeding the annual economic output of nearly the entire world — have become central to U.S. strategic thinking virtually overnight. As Trump summed it up, “We’re going to get the oil flowing.”
{Matzav.com}