U.S. companies developed Venezuela’s oil fields until the country nationalized its oil reserves in the 1970s.
Sarah Shamima
Source: https://www.aljazeera.com/news/2025/12/18/does-the-us-have-any-real-claim-on-venezuelan-oil-as-stephen-miller-says
Photo: https://www.aljazeera.com/news/2025/12/18/does-the-us-have-any-real-claim-on-venezuelan-oil-as-stephen-miller-says
U.S. national security adviser and Trump's close associate Stephen Miller on Wednesday said Venezuela's oil «It belongs to Washington.». . . . Miller’s statements sounded the day after US President Donald Trump wrote on social networks that he introduced «Total and complete blockade» authorized oil tankers entering and exiting Venezuela.
The U.S. has concentrated off Venezuela's coast the region's largest military force in decades and has carried out multiple strikes on vessels they claim to be carrying drugs, killing about 90 people since September. However, the Trump administration has not provided evidence of drug trafficking, prompting claims that it is more interested in controlling oil in the region and regime change in Venezuela.
Let's take a closer look at what Miller said and whether Washington could actually claim Venezuela's oil.
What did Miller say?
In a post on X on Wednesday, Miller wrote: «American sweat, ingenuity and labor created the oil industry in Venezuela. Its tyrannical expropriation has become the largest documented theft of American wealth and property.». . . .
He added: «These looted assets were then used to finance terrorism and flood our streets with murderers, mercenaries and drugs.». . . .
Miller also shared a screenshot of Trump's publication on Truth Social on Tuesday in which he accused Venezuela of «Theft of the» U.S. oil, land and other assets and the use of that oil to finance crime, terrorism and human trafficking.
In the publication, Trump announced the Venezuelan government «Foreign terrorist organization» He ordered a complete blockade of all authorized oil tankers entering or leaving the country.
Trump added that migrants sent by Venezuela are quickly deported and demanded the immediate return of all «stolen assets» The United States.
How much oil does Venezuela have?
Today, Venezuela’s oil reserves are concentrated mainly in the Orinoco belt, a vast region in the east of the country with an area of approximately 55,000 square kilometers.
Although the country has the world’s largest proven oil reserves – an estimated 303 billion barrels as of 2023 – it receives only a small fraction of crude oil exports’ revenue compared to the past.
According to the OEC, Venezuela exported crude oil to only $4.05 billion in 2023. That’s far less than other major exporters, including Saudi Arabia ($181 billion), the US ($125 billion) and Russia ($122 billion).
Why does the U.S. believe it has claims to Venezuelan oil?
«This claim is best understood as a political argument consisting of two components: a historical narrative about the early role of American companies in the development of Venezuela’s oil sector and a legal claim about Venezuela’s past expropriations of foreign oil assets.». . . . — El Salvador Santino Rehilme, a political scientist who heads the international relations program at Leiden University in the Netherlands, explained to Al Jazeera.
«Stephen Miller's Treatise that the United States «Established the oil industry in Venezuela» That's why Venezuelan oil «It is owned by» The US is clearly a rhetorical escalation of this narrative, not a standard legal position.». . . .
American companies began oil production in Venezuela in the early 1900s. In 1922, huge oil reserves were first discovered by Royal Dutch Shell in Venezuelan Lake Maracaibo, Sulia, in northwestern Venezuela. Since then, the United States has increased investment in the production and development of Venezuelan oil reserves. Companies such as Standard Oil have led the development of concession agreements, leading Venezuela to become a key global supplier, especially for the US.
Venezuela was one of the founders of OPEC, joining the organization when it was established on September 14, 1960. OPEC: — It is a group of major oil exporting countries that jointly manage supplies and influence global oil prices.
This situation began to change when Venezuela nationalized its oil industry in 1976 under then-President Carlos Andrés Perez amid an oil boom. He founded the state-owned Petroleos de Venezuela (PDVSA) to control all oil resources.
Venezuela continued to be a major U.S. oil exporter for several years, supplying 1.5-2 million barrels per day (bpd) in the late 1990s and early 2000s. But after Hugo Chávez took office in 1998, he nationalized all oil assets, confiscated the assets of foreign companies, restructured PDVSA and prioritized political goals over exports, leading to lower production along with inefficient management and a lack of investment.
When did the US impose sanctions on Venezuela?
The United States first imposed sanctions on Venezuelan oil in response to the nationalization of oil assets in 2005.
Under U.S. sanctions, these individuals and entities are denied access to any property or financial assets held in the United States. They cannot access their U.S. bank accounts, sell their property, or access their money if they pass through the U.S. financial system.
Any U.S. companies or citizens doing business with any authorized individual or entity will be punished and risk being subject to enforcement measures.
The sanctions apply not only to individuals on the list. Any entity that is 50 per cent or more owned directly or indirectly by one or more of the blocked individuals is also sanctioned, even if that company is not explicitly listed.
Under President Nicolas Maduro, the United States imposed additional sanctions in 2017 and tightened them again in 2019. This further restricted U.S. sales and Venezuelan companies’ access to global finance. As a result, U.S. oil exports virtually stopped, and Venezuela reoriented its trade mainly to China, with some sales to India and Cuba.
Last week, the Trump administration imposed even more sanctions - this time against members of the Maduro family and Venezuelan tankers carrying sanctions oil.
Today, PDVSA controls Venezuela’s oil industry, and U.S. involvement in Venezuelan oil production is limited. Houston-based Chevron — It is the only American company still operating in Venezuela.
Trump has repeatedly stated his desire for the United States to once again take control of Venezuela’s oil. Are there legal grounds for US claims to Venezuelan oil? No, that's not it. International law clearly states that sovereign states own natural resources in their territory in accordance with the principle of permanent sovereignty over natural resources.
This means that sovereign states have an inalienable right to control, use and dispose of their resources for their own development.
The concept of PSPR emerged after 1945 during the decolonization of former European colonies. It was enshrined in a resolution of the UN General Assembly adopted in December 1962.
Under this law, Venezuela therefore owns its oil. It would be illegal for the United States to claim it under international law.
«General U.S. claims to own Venezuelan oil have no credible basis in international law». . . . — said to Rehilme.
«A more legally recognized claim is — Namely claims for compensation related to the alleged illegal expropriation of specific investments, which relates to the sphere of investment arbitration and judicial recovery.». . . .
Why is Chevron still working there?
Foreign oil companies are not allowed to directly own oil fields in Venezuela, so the US oil group Chevron pays PDVSA a percentage of its production as part of a joint operation that accounts for about one-fifth of Venezuela's official oil production.
Such a structure allows PDVSA to generate oil revenues without direct sales to American buyers, which is limited by sanctions.
«From Venezuela, the structure of the joint venture is important because foreign companies cannot directly own oil fields, so Chevron is working with PDVSA, and this arrangement provides some of Venezuela's official production, which gives Caracas an incentive to support it.». . . . — Rehilme explained.
To circumvent U.S. restrictions, Chevron received a special license from U.S. President Joe Biden in 2022 to work outside of U.S. sanctions. The Trump administration has extended the company another exception this year.
Chevron increased supply of Venezuelan oil from 128,000 barrels per day in October this year to 150,000 barrels per day last month.
Chevron has been operating in Venezuela for decades and has billions of dollars in assets in oil fields, facilities and infrastructure. If it were to withdraw from Venezuela, it would be at high risk of losing those assets forever, as Venezuela could confiscate them.
In the past, the Chavez and Maduro administrations confiscated private assets when hundreds of companies were nationalized, in that part of foreign companies such as Exxon, Cargill and Hilton.
«For Chevron, continued presence protects long-term assets and strategic flexibility in a country with huge reserves while limiting legal and reputational risks through certain compliance with foreign regulations.». . . . — said to Rehilme.
