Trump targets Venezuelan oil after Maduro capture

Tuesday 06 January 2026 - 15:20

By: Dakir Madiha

Trump targets Venezuelan oil after Maduro capture

The Trump administration eyes control over Venezuela's vast energy and mineral wealth following the dramatic capture of President Nicolás Maduro. Officials highlight the country's oil reserves and critical minerals as key assets, even as major U.S. oil firms deny consultations on the operation.

Commerce Secretary Howard Lutnick stated Monday that Venezuela holds "enormous oil and natural gas reserves," plus "hundreds of millions of tons of nickel and bauxite" and "thousands of tons of gold" in the Orinoco Mining Arc, calling it one of the hemisphere's largest mining regions. President Donald Trump claimed U.S. oil companies will invest billions to repair "severely damaged infrastructure" and boost production.

Yet leaders from the top three U.S. oil majors ExxonMobil, ConocoPhillips, and Chevron contradicted Trump's weekend assertion that he spoke with "all" big oil firms before and after Maduro's capture. "No one at these three companies has had conversations with the White House about Venezuela operations, neither before nor after the ouster to date," an industry executive told Reuters Monday. Energy Secretary Chris Wright plans meetings with oil executives later this week.

The intervention challenges China's economic grip on Venezuela, where Beijing invested over $62 billion since 2007, 53% of all Chinese loans to Latin America. China buys about 80% of Venezuela's oil exports, averaging 470,000 barrels per day in 2025. Venezuela owes China roughly $10-12 billion under oil-backed loan deals.

Chinese buyers also gained access to strategic minerals like gold, coltan, and rare earths via the Orinoco Mining Arc, a 112,000-square-kilometer zone Maduro created in 2016. Beijing's dominance in 90% of global rare earth refining has fueled U.S.-China trade tensions, especially after China's export controls on these materials.

Venezuela's oil output has plummeted from 3.5 million barrels per day in the 1970s to about 900,000 today. The nation boasts proven reserves of 303 billion barrels the world's largest but mostly heavy crude that's costly to extract and refine.

Energy analysts warn revitalizing the sector demands years and massive investments. Francisco Monaldi of Rice University estimates tripling current output to 1970s peaks would cost $100 billion over a decade. Former Chevron Venezuela operations head Ali Moshiri told the New York Times that reaching 1.5 million barrels per day in 18 months requires $7 billion.

Chevron, the only major U.S. firm still operating in Venezuela, saw shares rise over 5% Monday as Maduro appeared in Manhattan federal court. The 69-year-old leader and his wife pleaded not guilty to narcoterrorism and cocaine importation charges carrying potential life sentences.