Trump's Venezuelan Oil Plan: Slippery Slope Amid Sanctions & Low Production
Explainers
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Firstpost•06-01-2026, 17:06
Trump's Venezuelan Oil Plan: Slippery Slope Amid Sanctions & Low Production
- •Venezuela holds the world's largest proven oil reserves but its production is severely depressed due to neglect, poor infrastructure, and US sanctions.
- •US sanctions imposed in 2019 further reduced Venezuela's oil output to a historic low of 350,000 barrels per day.
- •Venezuela bypasses sanctions by routing 80% of shipments to China via Malaysia, using 'ghost tankers' and cryptocurrency (USDT) for payments.
- •US energy giant Chevron operates under a special license, but other major US firms like ExxonMobil and ConocoPhillips exited after Hugo Chavez's nationalizations.
- •Experts doubt the feasibility of Trump's plan for US companies to re-enter Venezuela due to crumbling infrastructure, investment risks, and low oil prices.
Why It Matters: Trump's ambitious plan for Venezuelan oil faces major hurdles from sanctions, infrastructure decay, and investor reluctance.
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