Quick Take: President Trump said the U.S. would assume control of Venezuela’s oil reserves after special forces detained Nicolás Maduro and his wife on Jan. 3. Venezuela holds the world’s largest proven oil reserves but currently produces roughly 900,000 barrels per day, about 1% of global output. Industry estimates suggest an investment of about $7 billion could raise production to 1.5 million barrels per day within 18 months, and the Orinoco Oil Belt’s heavy crude could be strategically valuable to U.S. refineries. Any U.S. control would face legal, logistical, and diplomatic hurdles.
U.S. Says It Will Seize Venezuela’s Oil Reserves After Maduro’s Detention — What It Means for U.S. Energy
NewsNation — On Saturday, President Donald Trump said the United States would assume control of Venezuela’s oil reserves after special forces detained Venezuelan President Nicolás Maduro and his wife, Cilia Flores, on Jan. 3.
Why Venezuela Matters
Venezuela still holds the world’s largest proven oil reserves, but production has collapsed in recent years. Nationalization policies under former President Hugo Chávez, disinvestment by major international oil companies, and aging infrastructure have contributed to a steep decline in output.
Current Production And Recovery Potential
Today Venezuela produces roughly 900,000 barrels per day, representing about 1% of global oil production. Oil-operations expert Ali Moshiri told The New York Times that with an estimated $7 billion in fresh investment, output could potentially rise to about 1.5 million barrels per day within 18 months. That scenario would require repair of facilities, restoration of supply chains, and sizable capital and workforce commitments.
Orinoco Oil Belt And U.S. Refineries
The Orinoco Oil Belt contains vast deposits of heavy crude that remain largely undeveloped. While heavy crude can be more difficult and costly to produce and refine, it could be valuable to U.S. refineries configured to process heavier grades, offering a strategic feedstock if production and logistics are restored.
Implications For Americans
- Short-Term Impact: Any immediate effect on U.S. pump prices would likely be limited; changes to global prices depend on how quickly Venezuelan output could be restored and brought to market.
- Operational and Legal Hurdles: Taking control of foreign assets would face legal, diplomatic, and logistical challenges, including questions about international recognition, sanctions, and property rights.
- Long-Term Potential: If investment and repairs succeed, increased Venezuelan output could ease some supply constraints and diversify crude sources, but benefits would take months to materialize.
Source: Reporting by NewsNation and The New York Times; production and investment estimates cited from industry expert Ali Moshiri.
