United States President Donald Trump said on Saturday that the US would temporarily administer oil-rich Venezuela until a leadership transition takes place.
The president made the statement at a news conference following the widely condemned military operation in Venezuela and the abduction of the country’s leader, Nicolás Maduro, during a raid on Friday night.
Trump, who had previously banned American oil and gas firms from investing in Venezuela, now says US oil companies would enter the country, boasting that “no nation in the world could achieve what America achieved” on Saturday.
Venezuela sits on an estimated 303 billion barrels of crude oil — about one-fifth of the world’s proven reserves — according to the US Energy Information Administration (EIA). The type of oil Venezuela possesses — heavy, sour crude — requires specialized equipment and a high level of technical expertise to process.
The United States, the world’s largest oil producer, primarily produces light, sweet crude, which is ideal for gasoline production but less suitable for other refined products.
Heavy, sour crude, such as Venezuela’s, is critical for producing diesel, asphalt and fuels used in factories and other heavy equipment.
Although Venezuela holds the world’s largest proven oil reserves, its output remains low. The country currently produces about one million barrels of oil per day — roughly 0.8% of global crude production.
International sanctions on the Venezuelan government and a deep economic crisis have contributed to the decline of the country’s oil industry, but a lack of investment and maintenance has also played a significant role, according to the EIA.
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