Following reported explosions and a swift military operation, the United States has taken control of Venezuela‘s government, detaining president Nicolás maduro and establishing plans for significant involvement in the nation’s oil industry. The dramatic intervention, confirmed by former President Trump, sent shockwaves through global markets Monday, driving up U.S. energy stocks amid questions about long-term oil supply and regional stability. This move marks a significant escalation of U.S. policy toward Venezuela and raises complex questions about the future of the country’s vast energy resources.
U.S. energy stocks surged Monday following a pledge from Donald Trump to unlock Venezuela’s vast oil reserves, according to The Guardian. The move comes amid escalating tensions in the region and could significantly reshape global oil markets.
Explosions rocked the Venezuelan capital and three other states early Saturday, according to reports. Shortly after, Trump announced that the U.S. Delta Force had taken into custody President Nicolás Maduro and his wife, who were then flown out of the country.
Speaking to Fox News, Trump confirmed the United States would be “heavily involved” in Venezuela’s oil industry going forward. He stated that “something much more precise, much more powerful” was needed, and warned supporters of Maduro that a “bad future” awaits them if they remain loyal.
Stock Prices Soar
Chevron shares rose 7 percent in pre-market trading in Venezuela, while Exxon Mobil increased by 3.7 percent. Halliburton, which supplies products and services to the oil and gas industry, also saw a 9 percent jump in its stock price.
Oil prices edged higher on Monday, with Brent crude trading at $61.16 a barrel and West Texas Intermediate at $57.72.
Trump’s intervention could exacerbate existing oversupply in the market, as he promised that American oil companies would “come in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country.”
So far, no oil companies have publicly commented on Trump’s claim that they are willing to invest billions in rebuilding Venezuela’s oil industry. However, Ali Moshiri, a former Chevron executive, stated he has secured $2 billion for Venezuelan oil projects.
We’ve been waiting for this breakthrough for a while, and our $2 billion private placement memorandum is ready to be executed, with multiple investment targets identified.
– Moshiri told the Financial Times.
Experts Predict Oil Price Dip Won’t Last
Kathleen Brooks, research director at XTB, suggested the dip in oil prices may be “short-lived,” as investors assess how long it will take for any Venezuelan oil surplus to impact the global market. She explained that modernizing Venezuela’s heavy crude oil processing capabilities requires significant investment in upgrading aging infrastructure, drilling new wells, and building additional refineries.
Optimizing the resource-rich Venezuela to generate the income needed to turn the country around could take until 2030, and beyond.
– Brooks said, noting that the country produced 3.5 million barrels of oil per day in 1998, compared to just 1 million barrels today.
John Browne, former CEO of BP, echoed this sentiment, stating that “production could bounce back quickly, but it could just as easily reverse until people reorganize themselves.”
(Cover image: Donald Trump on January 21, 2025. Photo: Andrew Harnik / Getty Images)
