US President Donald Trump has announced his intention to use Venezuela’s huge oil reserves to significantly reduce global oil prices to around $50 per barrel. This is part of a large-scale strategy to establish American dominance in the Western Hemisphere’s energy market.
According to The Wall Street Journal, the Trump administration is developing a plan for long-term control over Venezuela’s oil industry following the recent military operation that resulted in the capture of former President Nicolas Maduro. Trump has repeatedly emphasized that access to Venezuela’s reserves — the largest in the world (more than 300 billion barrels) — will increase global oil supply and lower prices for American consumers.
“We are using these resources to lower oil prices and restore Venezuela in a profitable way,” Trump said in an interview with The New York Times. He also noted that American oil companies will invest billions of dollars in rebuilding infrastructure, and the US will recoup these costs through sales revenue.
Analysts note that current oil prices (Brent at around $55–57 per barrel) are already falling due to oversupply, partly thanks to the actions of OPEC+. Trump’s plan could exacerbate this trend by making production unprofitable for many producers, including shale companies in the US (the break-even point is often above $50–60).
Critics, including China and Russia, accuse the US of violating Venezuela’s sovereignty and attempting to oust their influence from the region. Experts doubt that there will be a quick effect: restoring Venezuelan production (currently less than 1 million barrels per day) will take years and hundreds of billions in investment.
Markets reacted with a drop in oil prices after Trump’s statements. This could hit the budgets of oil-producing countries, including Russia, but also create risks for the American industry.