Key points
- Trump has announced plans for US military action in Venezuela and Maduro’s arrest, not yet executed
- Venezuela holds the world’s largest proven oil reserves at 303 billion barrels, valued around $17.3 trillion
- Current oil production has collapsed to 800,000-1.2 million barrels per day, down from 3 million bpd peak
- Venezuela’s official gold reserves stand at 161 tonnes (worth $6.95 billion) as of November 2025
- Gold production plummeted to just 30 kg in 2023 from 480 kg in 2022
- The Guiana Shield contains rare gold-quartz veins 70% to 95% pure
- US involvement would mark a decisive shift in policy toward direct control of foreign energy assets
- Global markets reacted with oil price volatility, regional leaders expressed concern over sovereignty
Reports of a potential US military operation in Venezuela and the arrest of President Nicolás Maduro and his wife, Cilia Flores, have once again heightened global tensions. Most significantly, by signalling plans to arrest Maduro and declaring its intention to directly intervene in Venezuela’s oil sector, the US has sent shockwaves through the global energy market. But is this simply a game of oil, or are there other treasures in Venezuela that Trump has his eyes on? Let’s explore everything in detail.
Venezuela is said to have the world’s largest oil reserves, and the US has placed a major bet on them. Following announcements of a planned military operation in the country, Trump stated that American oil companies would enter Venezuela, investing billions of dollars to repair the country’s severely damaged oil infrastructure and begin large-scale production. This means the US would gain significant influence over Venezuela’s oil output and revenues.
The world’s largest oil reserves, by the numbers
Trump also made it clear that “we’re in the oil business, our big oil companies are going to go in there and spend billions of dollars and start making a lot of money.” He added that “the money coming out of the ground is tremendous, we’ll get back everything we spend.” Trump’s focus is clearly on Venezuela’s oil reserves, and this is evident from his announcement that Washington would become very strongly involved in Venezuela’s oil industry, signalling a decisive shift in US policy toward the country’s energy assets.
Venezuela has the world’s largest proven crude oil reserves, estimated at approximately 303 billion barrels (303,221 million barrels). This accounts for nearly one-fifth of the global total and represents about 17-18% of world oil reserves. Even at current prices (approximately $57 per barrel), the value of these reserves is approximately $17.3 trillion.
However, production has collapsed dramatically. Venezuela consistently produced more than 3 million barrels per day throughout the late 1990s and early 2000s, but a lack of investment and US sanctions reduced output to between 1 and 1.2 million barrels per day in 2025. Official data shows that Venezuela’s crude oil production in January 2025 stood at 892,000 barrels per day, a sharp drop from the country’s peak. Rebuilding this infrastructure would require not just money but also technical expertise and political stability.
Venezuela possesses a treasure trove of gold
It’s worth noting that, amidst recent events, Venezuela faces more than just allegations of corruption and drug trafficking; it also possesses vast reserves of not only oil but also other minerals. The country also has significant gold deposits. The southern regions of the country consist of jungle-covered plains and rugged mountainous areas, which are considered ideal for alluvial gold mining. These areas have seen a gold rush in recent years, though much of it has been dominated by illegal mining operations and armed groups.
The Guiana Shield region, which Venezuela shares with Guyana, Brazil and Colombia, contains some of the most underexplored mineral wealth in South America. This geological formation has been the subject of territorial disputes, particularly the Essequibo region claimed by both Venezuela and Guyana, adding a geopolitical dimension to any mining ambitions.
A rare form of natural gold, with declining production
The Guiana Shield, in particular, contains the Archean Imataca Complex gneiss and Proterozoic greenstone belts, which host low-sulfide gold-quartz veins. Gold-quartz veins are naturally occurring rocks composed of a mixture of gold and quartz minerals. They contain thin or thick veins of gold within layers of quartz. This is considered a rare form of natural gold, which can be 70% to 95% pure, making it exceptionally valuable for direct extraction and processing.
Mining experts estimate that Venezuela’s gold reserves could be worth hundreds of billions of dollars at current market prices. However, extracting this gold presents major challenges, including environmental concerns in the Amazon basin, the need to displace illegal mining operations and the requirement for substantial infrastructure investment in remote jungle areas.
Official statistics reveal a troubling trend. Venezuela’s gold production plummeted to just 30 kilograms in 2023, down from 480 kilograms in 2022. This represents a staggering 93.75% decline in just one year. The country’s official gold reserves stand at 161.22 tonnes as of the first quarter of 2024, worth approximately $6.95 billion USD as of November 2025. For context, Venezuela’s gold reserves peaked at 372.93 tonnes in the third quarter of 2011, meaning the country has sold off more than half its gold reserves over the past decade to meet financial obligations.
Global reactions and market impact
The announcement triggered immediate reactions in global oil markets, with crude prices showing volatility as traders weighed the potential for increased supply against geopolitical risks. OPEC members have expressed concern that unilateral US control of Venezuelan production could destabilise the cartel’s carefully managed output quotas.
Regional leaders in Latin America, including Colombia, Brazil and Mexico, have voiced strong opposition to any military intervention, citing principles of national sovereignty and non-intervention. The Caribbean Community (CARICOM) issued a statement calling for a peaceful resolution and respect for Venezuela’s territorial integrity.
Russia and China, both creditors to Venezuela with significant oil and mining interests, warned that such actions would violate international law and threaten global stability. They have indicated they may use diplomatic and economic tools to counter US moves.
Legal and environmental hurdles
International law experts question the legality of forcibly taking control of another nation’s natural resources, even under the guise of restoring democracy. The UN Charter prohibits the use of force against the territorial integrity of any state, making the proposed operation legally contentious.
Environmental groups have raised alarms about the potential ecological damage. The Orinoco Oil Belt and the Amazonian gold regions are environmentally sensitive areas. Large-scale oil extraction and gold mining could lead to deforestation, water contamination and the displacement of indigenous communities.
The path forward
While Trump has presented the plan as a win-win for the US and Venezuelan people, analysts warn that the reality is far more complex. The success of any oil and gold extraction would depend on establishing security, rebuilding infrastructure, navigating international sanctions and addressing deep-seated corruption.
As of January 2026, the operation remains in the planning phase, with no confirmed timeline for execution. The Venezuelan opposition has given mixed signals, welcoming economic recovery but rejecting foreign military presence. Meanwhile, Maduro’s government has strengthened ties with Russia and Iran, potentially complicating any US intervention.
The world now watches to see whether this becomes a new model of resource diplomacy or a cautionary tale of overreach.
