On January 3, 2026, President Donald Trump stated that the United States would take control of Venezuela's substantial oil reserves, estimated at 303 billion barrels, which represent about one-fifth of the world's total reserves. Trump indicated that American companies would be recruited to invest billions in refurbishing Venezuela's oil infrastructure, which has suffered from years of neglect and mismanagement.

Venezuela's oil production has significantly declined, currently averaging around 1 million barrels per day, a stark contrast to the 3.5 million barrels produced before Nicolás Maduro's government took power in 2013. This decline has been attributed to a combination of international sanctions, economic crisis, and a lack of investment in maintenance and infrastructure. The state-owned oil company, Petróleos de Venezuela S.A. (PDVSA), has reported that its pipelines have not been updated in over 50 years, with an estimated $58 billion needed to restore production to peak levels.

Trump's announcement suggests a potential shift in the U.S. approach to Venezuela, with implications for both the oil market and international relations. Analysts have noted that while U.S. intervention could lead to increased oil supply, the actual impact on global oil prices may be limited due to existing oversupply concerns and the time required to restore Venezuela's production capabilities.

The type of oil found in Venezuela, known as heavy, sour crude, requires specialized refining processes. U.S. refineries are equipped to handle this type of crude, which could make Venezuelan oil an attractive option for American companies. However, the complexities of reviving the Venezuelan oil sector raise questions about the feasibility and timeline of such efforts.

Experts caution that while the prospect of increased production is appealing, it may take years for Venezuela to significantly contribute to global oil supply. Additionally, the announcement follows a U.S. military operation that resulted in the seizure of control from Venezuelan President Nicolás Maduro, raising concerns about the intersection of U.S. foreign policy, corporate interests, and the humanitarian situation in Venezuela, where economic instability has led to significant social challenges for the population.