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Maduro accuses US of targeting Venezuela's oil reserves
Venezuelan President Nicolás Maduro has accused Washington of intensifying pressure on his government to seize control of the country's vast oil reserves, the largest proven reserves in the world.
This week, the US military intercepted an oil tanker allegedly transporting Venezuelan crude in violation of sanctions, warning of further action against similar vessels. The move follows recent US strikes on Venezuelan boats accused of drug trafficking, part of a broader campaign to isolate Maduro's administration.
Venezuela's oil production in sharp decline
Despite holding an estimated 303 billion barrels of oil, Venezuela's current output is a fraction of its potential. Production has plummeted since the early 2000s, as state control over the oil sector under Hugo Chávez and later Maduro led to an exodus of skilled workers and deteriorating infrastructure.
The International Energy Agency reported Venezuela produced just 860,000 barrels per day in November-less than a third of its output a decade ago and under 1% of global consumption.
US sanctions, first imposed in 2015 over human rights concerns, have further crippled the industry by cutting off investment and critical supplies. While some Western firms, including Chevron, remain active, their operations have shrunk significantly.
US interests: Oil or security?
Maduro's claims have reignited debate over Washington's motives. Some US lawmakers, like Florida Republican María Elvira Salazar, argue American companies could revive Venezuela's oil sector if given the chance. "Venezuela would be a field day for US oil firms," she told Fox Business, citing opportunities to repair infrastructure and boost production.
President Donald Trump, a vocal advocate for expanding domestic oil production, has framed his Venezuela policy around drug trafficking and Maduro's legitimacy. When asked whether the US campaign was about oil or narcotics, White House press secretary Karoline Leavitt said the administration was focused on "many things," prioritizing the fight against illegal drugs.
"I just have not seen the supporting evidence that oil is at the centre of its ambitions,"
Clayton Siegle, Center for Strategic and International Studies
Still, analysts acknowledge US firms would likely welcome access to Venezuela's heavy crude, which is in demand among Gulf Coast refiners for its cost-effectiveness.
Rebuilding Venezuela's oil sector: A costly gamble
Even if sanctions were lifted, restoring Venezuela's oil industry would require massive investment. A Wood Mackenzie report estimates modest improvements could push production to 2 million barrels per day within two years-but a full revival could take a decade and tens of billions of dollars.
Challenges include Venezuela's OPEC membership, which imposes production quotas, and shifting global energy trends. David Oxley, chief climate and commodities economist at Capital Economics, warns that oil demand growth is slowing, with consumption expected to peak in the late 2030s.
"Anyone investing in Venezuelan oil would have to ask: Is it worth it?"
David Oxley, Capital Economics
Chevron, the only major US oil company still operating in Venezuela, accounts for about a fifth of the country's current output. While it could expand if restrictions ease, broader industry interest remains uncertain.
Geopolitical stakes and economic realities
The standoff between Washington and Caracas reflects broader tensions over energy security and regional influence. While Maduro frames US actions as an attempt to control Venezuela's resources, analysts suggest the reality is more complex, balancing geopolitical strategy with economic pragmatism.
For now, Venezuela's oil remains a potential prize-but one that would demand significant time, money, and risk to unlock.
