The US military action against Venezuela is being seen as an act of President Donald Trump’s assertion. The US has already had its sights set on the world’s largest oil reserves. Its ambitions were not realized during the tenures of Chavez and Maduro. But now, the US wants to control the world’s largest oil reserves to its own advantage.
The US launched a military operation and arrested Venezuelan President Nicolas Maduro and his wife, sending a message of its dominance to the entire world. In an address after Maduro’s arrest, Trump clearly stated that the US will now run Venezuela. This means that the US will have rights over Venezuela’s abundant oil resources. Trump said that American companies are ready to invest billions of dollars to upgrade Venezuela’s dilapidated oil infrastructure and this will earn money for the country. In this article, we will learn about the decades-old conflict over Venezuela’s oil resources.
The world’s largest oil reserves
Venezuela has the world’s largest oil reserves. This amount, estimated at 303 billion barrels, represents nearly 20 percent of the world’s oil reserves and exceeds that of Saudi Arabia. If the United States were to seize Venezuela’s oil resources, it would mark a turning point in global politics. This control over a sovereign country solely for its own selfish purposes would not be in the world’s best interest. The United States must be prepared for the consequences of this in the long run. However, given Venezuela’s vast oil wealth and the history of US-Venezuela relations under former Presidents Hugo Chavez and Maduro, this move by the United States was not unexpected.
Long history of US investment
In fact, Venezuela was considered South America’s most prosperous country in the early 20th century due to its oil reserves. Located on the northern coast of South America, the country has a population of approximately 30 million. Foreign companies, including the United States, invested heavily in Venezuela’s oil industry and played a significant role in its politics. Despite US opposition, Venezuelan leaders began to exert increasing control over their major export resource.
Nationalization of the oil industry in 1976
Venezuela was a key player in the formation of the Organization of Petroleum Exporting Countries (OPEC) in 1960 and nationalized much of its oil industry in 1976. This move by Venezuela harmed American companies such as ExxonMobil. This move by Venezuela bolstered recent claims by the Trump administration that Venezuela “stole American oil.” However, it did not lead to economic prosperity for ordinary Venezuelans.
Mass demonstrations in Caracas in 1989
Mismanagement of the oil industry plunged Venezuela into a debt crisis, prompting the International Monetary Fund (IMF) to intervene in 1988. In February 1989, massive demonstrations erupted in Caracas, prompting the government to deploy the military to quell them. Official figures indicate that approximately 300 people were killed during these demonstrations. However, the actual death toll may be many times higher. Venezuelan society subsequently became further divided between the wealthy, who sought cooperation with the United States, and the working class, who desired independence from the United States. This division has defined Venezuelan politics ever since.
Rise of Chavez
This was followed by the rise of Hugo Chávez in Venezuelan politics. Chávez began his career as a military officer. In the early 1980s, he founded the socialist Revolutionary Bolivarian Movement-200 within the military and rose against the government. Following the 1989 riots, Chávez began planning to overthrow the government. In February 1992, he launched an unsuccessful coup against President Carlos Andrés Pérez, who was considered a pro-American president. Chávez later made another attempt but failed. Chávez subsequently spent two years in prison, but in 1998 emerged as a leading contender for the presidency with a socialist revolutionary agenda.
Chavez became an influential figure in Venezuelan and Latin American politics. His revolution revived the legacy of Simón Bolívar, who liberated South America from Spanish colonial rule. His use of oil revenues to subsidize food, health, and education programs earned him popularity at home and respect among like-minded regimes in the region. He donated billions of dollars worth of oil to Cuba, in exchange for thousands of Cuban doctors working in Venezuelan health centers.
Chavez has openly criticized the United States and the International Monetary Fund on various global platforms. In 2006, at the United Nations General Assembly, Chavez even called then-US President George W. Bush “the devil.”
America accused of promoting coup
In April 2002, following opposition protests, Chavez was briefly removed from power, and businessman Pedro Carmona was declared president. Soon after, the then-Bush administration in the United States recognized Carmona. However, two days later, Chavez returned to power with massive public support from his supporters. The United States denied any role in the coup, but questions persisted for years as to whether it had prior knowledge. Documents released in 2004 revealed that the CIA was aware of the plot, but its role remained unclear.
US pressure on Maduro continues
Nicolás Maduro was elected to the National Assembly in 2000 and became close to Chávez. In 2012, Maduro became Vice President of Venezuela and, after Chávez’s death in 2013, won the presidential election by a narrow margin. However, Maduro lacked the popular support of Chávez. The economic situation deteriorated, and inflation spiraled out of control. During Obama and Trump’s first terms, the US imposed sanctions on Venezuela and did not recognize Maduro’s victories in the 2018 and 2024 elections. After becoming internationally isolated, Venezuela became dependent on China. Venezuela began selling oil to China. Later, Maduro claimed to have foiled several coup and assassination plots, although the US denied any role. Now, by openly removing Maduro, Trump has made it clear that US interference in Venezuelan politics will continue as long as US financial interests remain there.
How will the US run Venezuela’s refinery?
US companies like ExxonMobil and ConocoPhillips, whose assets were nationalized by Chavez’s government, will be repatriated to Venezuela.
The US intends to invest billions of dollars to repair the dilapidated oil infrastructure there, so that production can be increased again.
Venezuela will officially remain an independent country, but oil production, sales, and prices will now be largely dictated by US strategies and companies.
Until now, Venezuela had been selling most of its oil to China. With the US’s arrival, the influence of countries like China and Russia is on the verge of eroding.
