Following the US special forces' capture of Venezuelan President Nicolás Maduro last weekend—as detailed in our prior coverage—the Trump administration is prioritizing the revival of Venezuela's collapsed oil sector. Plans include rolling back sanctions to enable US firms to invest billions in infrastructure, amid a history of US policies that contributed to production's 80% decline.
President Trump has justified the intervention partly by Venezuela's oil woes, despite sanctions imposed under his and prior administrations exacerbating the sector's fall. Holding the world's largest proven reserves, Venezuela exported 40% of its oil to the US pre-embargo. Production peaked in 2012 but plummeted due to low prices, mismanagement, corruption, and sanctions starting under Obama in 2015, intensified by Trump in 2017-2019.
Mark Weisbrot of the Center for Economic and Policy Research called the sanctions 'economic violence,' blocking exports and finance, leading to shortages, 40,000 excess deaths, and industry collapse. UN experts have labeled them 'economic warfare.'
Post-capture, the Department of Energy announced a sanctions rollback to facilitate global crude sales. The US will market the oil, control proceeds, and distribute them 'for the benefit of the American people and the Venezuelan people.' Trump described the sector as a 'total bust' and pledged billions from US companies like Chevron—the sole remaining operator—to repair infrastructure, potentially within 18 months, though experts foresee decades amid $60/barrel prices and instability.
