The relationship between the United States and Venezuela has been closely tied to oil for more than a century, with the South American nation’s enormous petroleum reserves repeatedly influencing Washington’s policies towards Caracas. The latest development in that long and often turbulent relationship is a major agreement under which the US is set to gain majority control over a significant portion of Venezuela’s proven oil reserves, reviving questions about American influence over the country’s most valuable natural resource.
Venezuela possesses the world’s largest proven crude oil reserves, estimated at around 303 billion barrels. Its importance to the United States became particularly evident during the Second World War, when Venezuelan petroleum helped supply Allied aircraft, ships and military vehicles. For decades afterwards, American energy companies maintained a substantial presence in the Venezuelan oil industry, while the two countries broadly maintained cooperative relations.
A US State Department document from 1950 illustrated just how central petroleum was to the relationship. The document stated that American policy towards Venezuela was significantly influenced by the need to guarantee an adequate supply of oil for the United States. More than seven decades later, the importance of Venezuelan crude to American strategic and economic interests remains evident.
The relationship began to deteriorate sharply after Hugo Chávez became Venezuela’s president in 1999. Chávez adopted a socialist and strongly anti-imperialist political position and sought closer relationships with countries including China, Russia and Iran. His government increasingly challenged Washington’s influence in Latin America while strengthening Venezuela’s dependence on oil exports.
Tensions intensified after a failed attempt to remove Chávez from power in 2002. The Venezuelan president was briefly detained by sections of the country’s military following deadly anti-government protests, but returned to office within days. Chávez subsequently accused the United States of involvement in the attempted coup, further damaging relations between Caracas and Washington.
In 2007, Chávez dramatically expanded the government’s control over the petroleum industry through a nationalisation programme. Foreign oil companies were required to accept arrangements in which Venezuela’s state-owned oil company held majority control of projects. While Chevron accepted the new terms, ExxonMobil and ConocoPhillips refused and were effectively forced out of the country’s oil sector. The companies later pursued lengthy international legal battles seeking compensation for assets taken by the Venezuelan government.
Although American companies lost much of their earlier influence, Venezuela continued to depend heavily on foreign investment and expertise. Russian, Chinese and other international companies remained involved in the country’s oil industry, while European firms including Shell, BP, Eni and Repsol also maintained operations.
After Chávez died in 2013, Nicolás Maduro succeeded him and continued his predecessor’s confrontational approach towards Washington. Maduro’s government was increasingly accused of authoritarianism, weakening democratic institutions and violating human rights. The United States responded with sanctions, while Washington also questioned the legitimacy of Maduro’s rule.
Venezuela’s economic crisis deepened during Maduro’s years in power. China became a particularly important destination for Venezuelan crude, with much of the country’s oil production eventually being exported there as repayment for earlier Chinese loans. At the same time, Caracas maintained close political relationships with Moscow and Beijing, adding another geopolitical dimension to the dispute with Washington.
During Donald Trump’s second administration, pressure on Maduro intensified. Washington accused the Venezuelan leader of involvement in drug trafficking and announced a $50 million reward for information leading to his arrest. The US subsequently increased military activity in the Caribbean and targeted alleged drug traffickers while also taking action against Venezuelan oil tankers.
The confrontation reached a dramatic point in January 2026, when US forces carried out a pre-dawn operation in Caracas and captured Maduro and his wife, Cilia Flores. Maduro was subsequently taken to the United States to face trial. His removal transformed the political landscape in Venezuela and paved the way for Delcy Rodríguez, a former Maduro ally, to become interim president.
Since then, Rodríguez’s government has moved towards cooperation with Washington, despite years of hostility between the two countries. That shift culminated in Trump’s announcement of a major oil agreement in August. The US president said Washington had secured majority control over more than 65 billion barrels of Venezuelan proven oil reserves through a partnership involving private businesses. The White House described the arrangement as a historic deal intended to secure American energy dominance for decades while reducing the influence of countries such as China and Russia.
The agreement has nevertheless generated considerable controversy. Critics argue that it gives Washington excessive influence over Venezuela’s natural resources and was negotiated with an interim government that does not have a direct electoral mandate. Some Venezuelan opposition figures fear that America’s economic interests could now take precedence over its stated objective of restoring democracy and holding fresh presidential elections.
Opposition leader and Nobel Peace Prize laureate María Corina Machado has also criticised the agreement, arguing that Venezuela’s natural wealth belongs to its people and should not be controlled through an arrangement with an unelected government. She has said that while the United States remains an important partner for Venezuela’s economic development, the country’s natural resources cannot legitimately be negotiated away by a government lacking democratic authority.
Supporters of the agreement, however, argue that increased American investment could revive Venezuela’s badly damaged oil industry, generate government revenue and create economic opportunities for its population. Venezuelan officials have claimed that expanded oil production could provide hundreds of billions of dollars for areas such as healthcare and education. US officials have similarly presented the arrangement as an opportunity to replace years of confrontation with commercial cooperation.
The latest agreement therefore represents more than an energy deal. It is the newest chapter in a relationship in which oil has consistently shaped political alliances, economic decisions and strategic calculations. From American companies dominating Venezuela’s petroleum sector to Chávez’s nationalisation programme and Washington’s latest push for control over a large share of the country’s reserves, petroleum has remained at the centre of the relationship. The controversy surrounding the new agreement suggests that Venezuela’s vast oil wealth will continue to influence the country’s relationship with the United States — and its political future — for years to come.
