Key facts
- The US has taken majority control over approximately one-fifth of Venezuela's oil reserves.
- A 1950 US State Department document indicated that US policy towards Venezuela was largely driven by securing oil supplies.
- US energy companies were historically involved in Venezuela's oil industry, with relations souring after Hugo Chávez's nationalization policies.
- Following the capture of Nicolás Maduro, the US announced a significant agreement to control Venezuelan oil.
- The deal has been described by the White House as the "biggest oil deal in world history."
The relationship between the United States and Venezuela has been historically dominated by oil, with a 1950 US Department of State memo explicitly stating that securing petroleum supplies was a primary objective of US policy towards Caracas. This historical reliance on oil has continued to shape bilateral interactions over the past century.
Following decades of cooperation and significant involvement of US energy companies in Venezuela's oil sector, relations soured dramatically in 1999 with the rise of Hugo Chávez. A self-proclaimed socialist and anti-imperialist, Chávez forged alliances with countries like China, Iran, and Russia, positioning Venezuela as an adversary to the US. His administration pursued nationalization policies, seizing oilfields and offering only minority stakes to foreign firms, leading to the exit of companies like ExxonMobil and ConocoPhillips, while Chevron accepted less favorable terms.
Under Nicolás Maduro, who succeeded Chávez, Venezuela's government became increasingly authoritarian, marked by widespread corruption and a US-led sanctions campaign. Maduro maintained close ties with Russia and China, with a substantial portion of Venezuela's oil exports directed to China as repayment for loans. The Trump administration intensified pressure on Maduro, imposing sanctions, seizing tankers, and eventually capturing Maduro and his wife in January 2026.
In the aftermath of Maduro's capture, the US announced a significant agreement to take majority control over approximately one-fifth of Venezuela's oil reserves. The White House hailed the deal as the "biggest oil deal in world history," aimed at securing US energy dominance for the next century. However, the move has drawn criticism from some Venezuelan economists, who have labeled the deal "predatory" and suggested it has turned Venezuela into a "protectorate."