Trump Invades Venezuela Over Oil Industry Collapse

U.S. special forces breached the residence of Nicolás Maduro in a middle-of-the-night operation, capturing the Venezuelan leader. Military helicopters bombed the capital, Caracas, during the raid. Maduro was subsequently flown to New York to stand trial on charges of narcoterrorism, which remain unproven.

Following the capture, President Trump spoke to reporters at his golf club in Bedminster, New Jersey. He described Venezuela's oil industry as a "total bust" and claimed the country was pumping almost nothing compared to its potential. The administration has scheduled a meeting with oil companies to discuss a possible reentry into the country's oil fields.

The Department of Energy recently announced that the U.S. is "selectively rolling back sanctions" to allow the transport of Venezuelan crude. This move is ironic because U.S. sanctions are the primary reason the Venezuelan oil industry is diminished. The administration plans to market Venezuelan oil and disburse the revenue at the discretion of the U.S. government.

The sanctions campaign began in 2015 under the Obama administration but was dramatically escalated by President Trump in 2017. Following mass protests and a power struggle in Venezuela, Trump imposed sanctions on Maduro and Venezuela's state-owned oil company. In 2019, the administration announced a full oil embargo, severing trade with the U.S., the EU, and India.

According to experts, these sanctions delivered a devastating blow to an already struggling industry. When the ability to export oil and access international finance was cut off, production collapsed. By the end of the decade, output had fallen by nearly 80% compared to its 2012 peak.

The sanctions had ripple effects far beyond the oil sector. By cutting off access to international finance, the U.S. dealt a huge blow to an economy highly dependent on imports. Venezuela struggled to purchase basic necessities such as food and medicine, while the oil embargo blocked its most profitable asset.

Experts describe the situation as a "stranglehold" on the country's economy. The lack of access to necessary items for electricity and clean water exacerbated disease and poverty. One study estimated that approximately 40,000 additional deaths could be attributed to the economic conditions caused by the sanctions.

Patients with HIV, diabetes, and hypertension were unable to access life-saving drugs. The Trump administration has maintained that these measures were necessary to pressure the Maduro regime, despite the severe humanitarian consequences.

Despite the military action and the lifting of some sanctions, there are few signs that major oil companies are eager to return to Venezuela. Current oil prices hover around $60 a barrel, which is roughly the breakeven point for many companies. Furthermore, the lack of political stability makes committing billions of dollars to restart production a risky venture.

Currently, Chevron is the only U.S. company with active operations in the country. The sanctions had previously reshaped the global flow of oil, forcing U.S. Gulf Coast refiners to turn to suppliers in Colombia, Mexico, and Argentina. Other countries dependent on Venezuelan oil turned to Russia to fill the gap.

President Trump remains optimistic, stating that U.S. oil companies will spend billions to "fix the badly broken infrastructure." However, the path to recovery for Venezuela's oil industry remains uncertain amidst the ongoing military occupation and political upheaval.