President Donald Trump said on Saturday that the United States would allow American oil companies to enter Venezuela and develop its vast crude reserves following a US military operation that removed President Nicolás Maduro from power.
Early Saturday, US forces carried out air strikes on Venezuela’s capital, Caracas. Maduro and his wife were captured and flown to New York City, where they are facing charges related to drug trafficking and weapons offenses.
Speaking at a news conference in Florida, Trump said major US oil companies would invest billions of dollars to repair Venezuela’s damaged oil infrastructure and generate revenue for the country. He added, however, that the US embargo on Venezuelan oil would remain in place.
The United States first imposed economic sanctions on Venezuela in 2017, followed by oil sanctions in 2019.
According to the Organization of the Petroleum Exporting Countries (OPEC), Venezuela currently produces just under one million barrels of oil per day, much of which is sold on the black market at discounted prices.
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Trump accused the Venezuelan government of using oil revenue to fund drug trafficking, human trafficking, and other crimes.
At the beginning of Trump’s second term in 2025, his administration revoked licenses that had allowed foreign oil companies to operate in Venezuela despite sanctions. US-based Chevron was the only company granted an exemption and currently operates four oil fields in partnership with the state-owned company PDVSA.
Washington has also enforced a full blockade on tankers linked to Venezuelan oil exports.
Venezuela holds approximately 17 percent of the world’s proven oil reserves, according to the International Energy Agency, but years of corruption and mismanagement have sharply reduced production. Much of its oil is heavy crude, typically refined into diesel and industrial products rather than gasoline. US refineries along the Gulf Coast are specifically equipped to process this type of oil.
Despite this, analysts say the United States does not rely on Venezuelan oil. “The United States is doing just fine without Venezuelan oil,” said Stephen Schork of the Schork Group, citing political motivations behind the policy.