U.S. Control Over Venezuelan Oil: Implications and Challenges

Following the capture of Venezuelan President Nicolás Maduro in early January 2026, the United States has taken significant control over Venezuela's oil industry. The U.S. Treasury Department announced a new tax regime where energy companies operating in Venezuela will pay local taxes and fees to the Venezuelan government, while royalty payments and federal taxes will be redirected into a fund managed by the U.S. This fund, known as the Foreign Government Deposit Funds, is part of a broader strategy to manage Venezuelan oil sales, which are currently overseen by traders Vitol and Trafigura.

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President Donald Trump has expressed a desire for U.S. energy companies to invest heavily in Venezuela's oil sector, estimating that an investment of $100 billion could unlock the country's vast oil reserves. However, major oil companies have shown reluctance to engage, citing the high risks and costs associated with Venezuelan operations. Exxon Mobil has labeled Venezuela as "uninvestible," reflecting a broader trend among oil firms that prefer stable, low-risk investments in shale oil and petrochemicals rather than the uncertain landscape of Venezuelan oil.

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U.S. Energy Secretary Chris Wright indicated that the Trump administration holds significant leverage over Venezuela's interim government, led by Delcy Rodríguez. He stated that the U.S. controls the largest revenue source for the Venezuelan government, which could be used to drive positive changes benefiting both Americans and Venezuelans. As a result, the U.S. has the ability to influence the direction of Venezuelan governance based on compliance with U.S. interests.

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Despite Trump's assertions that proceeds from Venezuelan oil sales would benefit the Venezuelan people, reports indicate that the revenue generated remains under U.S. control. The first sale of Venezuelan crude reportedly generated $500 million, but the allocation of these funds has raised concerns regarding transparency. Economists have noted that approximately 80% of the funds are reserved for priority sectors such as food and medicine, while only a small fraction is available for individual citizens.

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Critics argue that the U.S. approach to controlling Venezuelan oil is not merely about humanitarian assistance but also about geopolitical strategy, particularly in the context of competition with China. The U.S. aims to secure access to critical minerals and oil resources in Venezuela to counter China's dominance in renewable energy technologies. This strategy raises ethical questions about the implications of U.S. intervention in Venezuela's internal affairs and the long-term sustainability of its oil-centric energy policy.

Power Projection in the “Backyard”: The Venezuela Operation, Oil, and Critical Minerals

While the U.S. has positioned itself as a key player in Venezuelan oil, discrepancies exist regarding the actual volume of oil being exported and the effectiveness of U.S. control over the industry. The average oil exports from Venezuela in early 2026 were reported to be significantly lower than previous years, indicating challenges in reviving the oil sector. Moving forward, the U.S. strategy will likely continue to evolve as it navigates both domestic energy needs and international geopolitical dynamics.

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• “Sales today are over a billion dollars, and in fact, we have sort of short-term agreements over the next few months that will bring in another $5 billion,” — Chris Wright, U.S. Energy Secretary

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• “ "If they're driving positive change that benefits Americans and is improving the life opportunities of people in Venezuela, that money will flow.” — Chris Wright, U.S. Energy Secretary

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• “uninvestible” — Exxon Mobil Representative

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This situation underscores the complexities of U.S. involvement in Venezuela's oil industry, where economic interests intersect with broader geopolitical strategies.

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