President Donald Trump declared Saturday that United States oil companies will take control of Venezuela’s energy sector following military operations that captured President Nicolás Maduro and his wife Cilia Flores.
Trump stated the United States would temporarily administer Venezuela while working toward what he described as a safe political transition. He spoke from his Mar a Lago residence in Palm Beach, Florida, hours after announcing the completion of special forces operations in Caracas.
The President said American oil companies would invest billions of dollars to repair Venezuela’s deteriorating petroleum infrastructure. He characterized the country’s oil industry as severely mismanaged over an extended period.
“As everyone knows, the oil business in Venezuela has been a bust for a long period of time. We’re going to have our very large United States oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump stated.
The President claimed Venezuela’s oil industry had been built with American expertise and subsequently stolen during previous administrations. He described this as constituting one of the largest thefts of American property in history.
Trump indicated that Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and other officials would oversee Venezuelan operations. He promised to announce specific personnel responsible for administering the country.
The President stated oil revenue would benefit both Venezuela and the United States. He explained that wealth extracted would flow to Venezuelan people, Venezuelan expatriates, and America as reimbursement for damages.
Trump expressed willingness to maintain military forces on the ground and threatened additional strikes if necessary to secure operations. He emphasized that running Venezuela would not cost American taxpayers due to anticipated oil revenues.
Venezuela possesses the world’s largest proven crude oil reserves at approximately 303 billion barrels, representing about one fifth of global reserves according to the United States Energy Information Administration (EIA). The South American nation is a founding member of the Organization of the Petroleum Exporting Countries (OPEC).
Despite massive reserves, Venezuela currently produces only about one million barrels per day, less than one percent of global crude production. Production once peaked at 3.5 million barrels daily in the 1970s, representing over seven percent of global output at that time.
The state owned oil company Petróleos de Venezuela (PDVSA) has not updated its pipelines in 50 years, and restoration to peak production levels would require approximately 58 billion dollars in infrastructure investment. Years of underinvestment, sanctions, economic crisis, and technical expertise loss have crippled the industry.
Venezuela nationalized its oil sector during the 1970s, creating PDVSA. The country briefly opened to foreign investment in the 1990s, but President Hugo Chávez later required PDVSA to maintain majority ownership in all projects starting in 1999.
China became Venezuela’s primary oil customer after sanctions shifted trade away from the United States. Venezuelan exports effectively halted after the Trump administration imposed a blockade on vessels entering or leaving the country in December 2025.
Venezuelan reserves consist primarily of extra heavy crude oil requiring specialized equipment and high technical expertise to extract and refine. This heavy, sour crude differs substantially from the light, sweet crude that American producers typically extract.
Energy analyst Gregory Brew of Eurasia Group noted that companies would likely hesitate to enter without a stable security environment and favorable terms to offset risks, especially given current market oversupply and low prices.
The market outlook remains uncertain. Brew indicated that Maduro’s removal represents a bearish signal for oil prices, as the United States may relax its blockade after achieving its stated goal. Oil analysts expect any production increases would require years of sustained investment and political stability.
Chevron remains the only American oil company currently operating in Venezuela. The company issued a statement emphasizing its focus on employee safety, asset integrity, and compliance with all relevant laws and regulations.
American oil companies firmly declined when the administration asked about their interest in returning to Venezuela last month, according to reporting by Politico citing four unnamed sources familiar with the discussions. The American Petroleum Institute stated Saturday it was closely monitoring developments and potential implications for global energy markets.
Historical context complicates the situation. When Venezuela first nationalized its oil industry in the 1970s, American companies which had accounted for more than 70 percent of crude production lost roughly five billion dollars in assets but received only one billion dollars each in compensation.
Venezuelan economist Francisco Rodríguez of the University of Denver explained that companies at that time felt pursuing larger sums didn’t make sense. Hugo Chávez’s 2007 nationalization effort proved more controversial, with ExxonMobil and ConocoPhillips claiming they were owed billions in compensation.
Phil Flynn, senior market analyst at the Price Futures Group, described the potential impact as historically significant for oil markets, noting that the Maduro regime and Hugo Chávez had essentially ransacked Venezuela’s oil industry.
Energy consultant Bob McNally of Rapidan Energy Group suggested the intervention’s price impact would likely be modest unless widespread social unrest emerges. He emphasized that stability would determine whether a pro American Venezuela could quickly increase production.
Venezuela’s heavy, sour crude is particularly valuable for producing diesel, asphalt, and fuels for factories and heavy equipment. Most American refineries were constructed to process Venezuelan heavy oil and operate more efficiently with it compared to domestic light crude.
Market analysts note that oil prices have remained subdued due to oversupply concerns. United States crude briefly rose above 60 dollars per barrel when the administration began seizing Venezuelan vessels but has since fallen to 57 dollars.
Venezuela exported approximately 700,000 to 900,000 barrels per day over the past year, while Saudi Arabia exports over six million barrels daily and American crude exports often exceed four million barrels per day.
The operation raises numerous uncertainties about long term American involvement, corporate interest despite massive reserves, post Maduro governance structures, security conditions, and broader geopolitical implications. Questions remain about how long American administration of Venezuela might last and what a political transition would entail.
Energy experts caution that historical precedents from Libya and Iraq following regime changes suggest that restoring oil production to previous levels rarely happens quickly. Political instability, security challenges, and infrastructure decay typically prolong recovery periods.
Venezuelan Vice President Delcy Rodríguez appeared on state television condemning what she described as an abduction for the purpose of extracting oil and natural resources. Trump claimed Rodríguez had been sworn in as the new leader and described her as willing to do what the administration considers necessary, though Venezuelan opposition figures disputed this account.
Democratic lawmakers criticized the administration for launching military strikes without congressional approval. Democratic National Committee chair Ken Martin excoriated Trump for what Martin termed unconstitutional and illegal strikes, accusing the President of revealing that the operation’s true justification involved regime change and enriching oil corporations rather than stemming drug flows.
International reactions have varied. The African Union expressed grave concern and called for peaceful resolution. The United Nations Security Council plans to convene January 5 to discuss the situation at the request of Colombia, Russia, and China. Multiple nations including France, Mexico, and South Africa have condemned the operation as violating international law.
Trump told Fox News he watched the operation unfold like a television show and defended it as necessary for stopping drugs entering the United States. He emphasized no American fatalities occurred during the raid, though officials acknowledged a helicopter was struck and several service members injured.
Maduro and Flores were transported aboard the USS Iwo Jima amphibious assault ship to New York, where they face drug trafficking charges in the Southern District of New York stemming from a 2020 indictment. Attorney General Pamela Bondi announced Maduro would face trial in American courts.
The captured Venezuelan leader has governed since 2013 following Hugo Chávez’s death. His presidency has been marked by economic collapse, hyperinflation, mass emigration, and disputed elections. The 2024 presidential election results remain contested, with opposition candidate Edmundo González claiming victory based on alternative vote tallies.
Trump’s announcement marks an extraordinary assertion of American control over a sovereign nation’s natural resources and government. The full implications for Venezuela, regional stability, global energy markets, and international law remain uncertain as events continue to unfold.
