U.S. President Donald Trump said on Saturday that Washington would temporarily administer oil-rich Venezuela following a military operation that resulted in the abduction of President Nicolás Maduro, pending a leadership transition.
Trump made the remarks at a news conference a day after the overnight raid, an operation that drew international condemnation and sharply escalated tensions over Venezuela’s political future.
The U.S. leader said American oil companies would move into Venezuela, reversing earlier restrictions on U.S. investment in the country’s energy sector, and described the operation as an unmatched show of American power.
Venezuela holds an estimated 303 billion barrels of crude oil, around one-fifth of the world’s proven reserves, according to the U.S. Energy Information Administration.
Much of Venezuela’s oil is heavy, sour crude, which requires specialised equipment and technical expertise to process, unlike the light, sweet crude predominantly produced in the United States.
Heavy crude is essential for producing diesel, asphalt and fuels used in heavy industry, making Venezuela’s reserves strategically significant.
Despite its vast resources, Venezuela’s oil output has fallen to about one million barrels per day, less than 1% of global production.
International sanctions, economic collapse, and years of underinvestment and poor maintenance have severely weakened the country’s oil industry, according to energy analysts.