Oil, Energy Security, or Fiscal Relief - what Venezuela means for US

At the start of 2026, the Trump administration once again dominates global headlines—much as it did at the beginning of 2025. Then, the flashpoint was tariffs on aluminium and steel imports; now, it is the US military strike on Venezuela. In the early hours of January 3, 2026, around 2 a.m. local time, the United States launched a military operation codenamed Operation Absolute Resolve; and within the next few days, speculation over Washington’s motives and the broader consequences has intensified.

Well, President Donald Trump has been unequivocal about the intent. Following the seizure of President Nicolás Maduro, Trump announced that the US would assume control of Venezuela to tap into the South American nation’s vast oil reserves. This move is quite a familiar geo-political pattern as oil has been a strategic resource in international conflicts. From World War II (1939-1945) to Gulf War (1990-91), oil was a recurring factor for all the geo-political conflicts. The US intervention in Venezuela appears to follow the same script.

The attraction is obvious and it is the 303 billion barrels of proven crude oil reserves - nearly one-fifth of the world’s proven reserves, according to the US Energy Information Administration (EIA). This places Venezuela well ahead of Saudi Arabia with oil reserves of 267 billion, Iran 209 billion, Iraq 145 billion, the UAE 113 billion, Kuwait 102 billion, and so on and so forth.