Oil Has Defined US-Venezuela Ties for a Century, and the Rivalry Is Entering a New Phase

For nearly a century, oil has been one of the central forces shaping relations between the United States and Venezuela. From cooperation to confrontation, nationalisation to sanctions, oil interests have repeatedly influenced major turning points in the relationship between the two countries.A recent agreement giving the United States majority control over Venezuela’s vast oil resources has opened a new chapter in that long and often turbulent history.A visual analysis has highlighted the strategic importance Washington has historically attached to Venezuelan oil. A 1950 US State Department document, for instance, stated that the objective of securing adequate oil supplies from Venezuela influenced virtually all US policies in one way or another.Venezuela's vast oil reservesVenezuela holds the world's largest proven reserves of crude oil. During World War II, the country became a major supplier of fuel for Allied warplanes, ships and tanks.Close economic ties between Washington and Caracas continued for decades after the war. US energy companies also maintained significant operations in Venezuela's oil industry.The relationship began to change substantially after Hugo Chávez became president of Venezuela in 1999.Known for his socialist and anti-US stance, Chávez strengthened ties with China, Russia and Iran. At the same time, he began reducing the role of foreign companies in Venezuela's oil industry and expanding state control.State control increases under ChávezIn 2007, Chávez further tightened state control over Venezuela's oil fields. Foreign companies were allowed to remain as minority partners, while the state-owned oil company retained majority control.US energy giant Chevron accepted the new terms and continued operating in Venezuela. ExxonMobil and ConocoPhillips, however, rejected the arrangements and withdrew from the country's oil sector. They later engaged in lengthy legal battles with Venezuela over compensation.After Chávez died, Nicolás Maduro came to power in 2013. He largely continued Chávez's policies and maintained close relations with Russia and China.Washington, meanwhile, imposed sanctions on the Maduro government and repeatedly criticised it as undemocratic and illegitimate.Sanctions deepen the economic crisisUS sanctions, combined with corruption and Venezuela's domestic economic crisis, further weakened the country's economy.During this period, a large share of Venezuela's oil exports shifted towards China. Beijing not only purchased Venezuelan oil but also received oil as repayment for loans previously provided to Caracas.Relations between Washington and Caracas subsequently deteriorated further.The United States accused Maduro of involvement in drug trafficking and announced a $50 million reward for information leading to his arrest. Experts, however, have questioned whether sufficient evidence has been presented to support some of the US allegations against Maduro.Dramatic turn in 2026The situation took a dramatic turn at the beginning of 2026 when US special forces carried out an operation in Caracas and detained Maduro.Delcy Rodríguez subsequently assumed office as acting president and her government chose a path of cooperation with Washington.In August, US President Donald Trump announced an agreement aimed at establishing extensive US control over Venezuela's oil resources.Under the agreement, the United States is set to gain majority control over more than 65 billion barrels of proven oil reserves. The White House described it as “the largest oil deal in the history of the world” and said the agreement would secure US energy dominance for the next century.Debate over the agreementThe agreement has sparked debate inside Venezuela.Economist Francisco Rodríguez criticised the deal as “exploitative”, arguing that it was not negotiated between equal sides under Venezuela's current political circumstances.Opposition leader María Corina Machado has also said that decisions over the country's natural resources should belong to the Venezuelan people, not to an unelected government.The US administration, however, presents the agreement as an initiative to rebuild Venezuela's economy, increase oil production and create a path towards democratic change in the country.Washington also sees reducing Chinese and Russian influence and restoring US influence over Venezuela's oil sector as important strategic objectives.Oil remains at the centreThe history of US-Venezuela relations over the past century shows that one issue has repeatedly returned to the centre of the relationship: oil.The resource that once formed the basis of close economic cooperation later became one of the main sources of confrontation between the two countries. The latest oil agreement has once again placed Venezuelan crude at the centre of the relationship, this time within a significantly different geopolitical landscape involving the United States, China and Russia.