Homeland Security Advisor and Trump ally Stephen Miller suggested Wednesday that Venezuela’s oil “belongs to Washington.”
Miller’s comments came a day after U.S. President Donald Trump posted on social media that there would be a “total and complete blockade” of sanctioned oil tankers traveling to and from Venezuela.
The United States has amassed its largest military presence in the region in decades off the coast of Venezuela, launching multiple attacks on vessels it says are trafficking drugs since September, killing about 90 people. But the Trump administration has not presented any evidence of drug trafficking, prompting allegations that it has an interest in controlling the region’s oil and forcing regime change in Venezuela.
Here’s a closer look at Miller’s remarks and whether Washington can really claim ownership of Venezuelan oil.
What did Miller say?
“The sweat, ingenuity, and toil of Americans created Venezuela’s oil industry. Its tyrannical expropriation was the greatest theft of American wealth and property in history,” Miller wrote in a post on X on Wednesday.
He added: “These looted assets were used to finance terrorism, filling the streets with murderers, mercenaries and drugs.”
Miller also shared a screenshot of Trump’s Truth social post from Tuesday in which he accused Venezuela of “stealing” U.S. oil, land and other assets and using that oil to finance crime, terrorism and human trafficking.
In a post, President Trump declared the Venezuelan government a “foreign terrorist organization” and ordered a total blockade of all sanctioned oil tankers traveling to and from the country.
President Trump added that migrants sent from Venezuela are being quickly deported and demanded that all “stolen assets” be immediately returned to the United States.
How much oil does Venezuela have?
Currently, Venezuela’s oil reserves are mainly concentrated in the Orinoco belt. This belt is located in the eastern part of the country and is a vast area spanning approximately 55,000 square kilometers (21,235 square miles).
The country boasts the world’s largest proven oil reserves, estimated at 303 billion barrels (Bbbl) in 2023, yet it earns only a fraction of the revenue it once earned from crude oil exports.
Venezuela’s crude oil exports were worth just $4.05 billion in 2023, according to data from the Observatory of Economic Complexity (OEC). This is significantly lower than other major exporters such as Saudi Arabia ($181 billion), the United States ($125 billion) and Russia ($122 billion).
Why does the US believe it has a right to Venezuelan oil?
American companies began drilling for oil in Venezuela in the early 1900s.
Vast oil reserves were first discovered in 1922 by Royal Dutch Shell in Lake Maracaibo in Zulia state in northwestern Venezuela.
At this point, the United States stepped up its investment in the extraction and development of Venezuela’s oil reserves. Companies such as Standard Oil led development based on concession agreements, propelling Venezuela to the position of a major global supplier, especially to the United States.
Venezuela is a founding member of OPEC, joining upon its creation on September 14, 1960. OPEC is a group of major oil exporting countries that work together to control supply and influence global oil prices.
This situation began to end when Venezuela nationalized its oil industry under then-President Carlos Andres Pérez in 1976 during the oil boom. He established the state-run Venezuelan Petroleum Company (PDVSA) to manage all oil resources.
Venezuela remained a major oil exporter to the United States for several years, supplying 1.5 million to 2 million barrels per day (bpd) in the late 1990s and early 2000s. However, when Hugo Chávez became president in 1998, he nationalized all oil assets, seized foreign assets, reorganized PDVSA, and prioritized political goals over exports, leading to a decline in production along with mismanagement and underinvestment.
When did the US impose sanctions on Venezuela?
The United States first imposed sanctions on Venezuelan oil in 2005 in retaliation for the nationalization of oil assets.
Under U.S. sanctions, the named individuals and companies are prohibited from accessing any property or financial assets held in the United States. They cannot access U.S. bank accounts, sell their property, or access their own money if it passes through the U.S. financial system.
U.S. companies or nationals that do business with sanctioned individuals or companies risk being subject to penalties and enforcement actions.
Sanctions extend beyond the individuals on the list. Companies in which one or more of the blocked persons directly or indirectly owns 50% or more of the shares are also subject to sanctions, even if the company is not named.
Under President Nicolas Maduro, the United States imposed further sanctions in 2017 and tightened them again in 2019. This further restricted sales to the United States and Venezuelan companies’ access to global finance. As a result, oil exports to the United States have all but stopped, and Venezuela has shifted its trade primarily to China, with some also sold to India and Cuba.
Last week, the Trump administration imposed further sanctions. This time it was against members of the Maduro family and a Venezuelan tanker transporting sanctioned oil.
PDVSA currently controls Venezuela’s oil industry, and US involvement in Venezuelan oil drilling is limited. Houston-based Chevron is the only U.S. company still operating in Venezuela.
President Trump has repeatedly said he wants the United States to regain control of Venezuela’s oil.
Is there a legal basis for the US claim on Venezuelan oil?
No. International law is clear that sovereign states own the natural resources within their territory, based on the principle of permanent sovereignty over natural resources (PSNR).
This means that sovereign states have inherent rights to manage, use and dispose of resources for their own development.
The concept of PSNR emerged during the decolonization of former European colonies after 1945. It was solidified by a resolution of the United Nations General Assembly adopted in December 1962.
Therefore, under this law, Venezuela owns its own oil. It would be illegal under international law for the United States to claim territorial rights.
Why does Chevron continue to operate there?
Foreign oil companies are not allowed to own oil fields outright in Venezuela, so US oil group Chevron pays PDVSA a portion of its output under the joint operation, which accounts for about one-fifth of Venezuela’s official oil production.
The arrangement allows PDVSA to generate revenue from oil without selling directly to U.S. buyers, which is restricted by sanctions, and gives Venezuela an incentive to continue allowing Chevron to operate.
To circumvent U.S. regulations, Chevron was granted a special license by U.S. President Joe Biden in 2022 to operate outside of U.S. sanctions. The Trump administration extended further exemptions for the company this year.
Chevron increased shipments of Venezuelan crude oil from 128,000 barrels per day in October to 150,000 barrels per day last month.
Chevron has been operating in Venezuela for decades and has billions of dollars of assets in the country in the form of oil fields, facilities and infrastructure. If we withdraw from Venezuela, we run a high risk of permanently losing those assets because Venezuela may seize them.
In the past, the Chávez and Maduro governments have seized personal assets when nationalizing hundreds of companies, including some foreign-owned companies such as Exxon, Cargill and Hilton.
