Venezuela has reached out to OPEC to address what it has called “threatening and illegal activity from the United States.” President Nicolás Maduro has made it clear in his letters to OPEC and OPEC+ that the actions of the United States are legally and politically destabilizing the market for countries that produce and trade in oil. In Venezuela’s latest diplomatic missive, Maduro reiterates claims that the U.S. wants to seize Venezuela’s oil assets.
Venezuela’s oil supply is being eyed by the U.S.
Venezuela has over 303 billion barrels, the most in the world. Maduro called on OPEC members to help Venezuela stop the U.S. from destabilizing the global energy market. Maduro claims that the U.S. is using deadly force against Venezuela’s military, thereby violating international law, the peace of the world, and the security of the world’s energy supply.
Maduro’s message comes in the middle of a diplomatic standoff between Caracas and Washington. The U.S. recently increased its military presence in the Caribbean by moving the USS Gerald R. Ford and thousands of troops, claiming it is part of an anti-drug trafficking operation.
Venezuelan officials claim the U.S. is using this military presence to effect regime change and control Venezuela’s oil. The Trump administration claims the U.S. is fighting drug trafficking, although evidence of trafficking is lacking.
A diplomatic standoff between the nations over Venezuela’s assets
The diplomatic standoff has been made worse after U.S. courts have authorized the liquidation of Citgo, Venezuela’s most valuable foreign asset, in order to satisfy claims of billions of dollars in debt.
Venezuela accused them of fraud in what they believe to be a politically-motivated situation over Venezuela’s oil company, PDVSA, which is threatened as one of the country’s main sources of revenue.
Venezuela’s oil appeal is becoming politicized and is causing concern for oil producers. For decades, OPEC has attempted to maintain stability within the oil supply and pricing within the U.S. itself.
However, OPEC has ceased to have military control over the U.S., which has allowed for more stability. Venezuela, and more specifically Nicolas Maduro, has warned that the U.S. military influence on oil control and pricing of the U.S. has potential consequences for other countries as well.
Venezuela’s loss of control over oil exports
As of 2023, Venezuela has exported $4.05 billion worth of oil, a mere token, due to U.S. sanctions. The country has also seen its major oil control diminish over the years. Venezuela was a founding member of OPEC in 1960. This is a big reason why Caracas is attempting to gain support from OPEC and fellow allies.
Most analysts doubt that Venezuela’s attempt to rally support for OPEC is going to lead to any action. Some analysts think its attempt to gain support from Iraq and Saudi Arabia is going to be unsuccessful because those two OPEC members are strategically aligned with the U.S and aren’t going to want to antagonize them for Venezuela’s sake.
Other analysts believe that OPEC’s main focus is not to take sides with Venezuela and focus more on maintaining the stability of the oil market than getting involved in Venezuela’s geopolitical disputes. But Venezuela’s attempt to gain support from other oil-producing countries shows its growing determination to gain more control over the oil it produces.
The conflict with the U.S is also part of a bigger Venezuelan problem. Venezuela’s economy is 100 % dependent on oil and with the U.S. in the position they are politically they can take control over Venezuela’s oil. So by trying to rally other OPEC countries to get to the U.S., Venezuela will be able to protect its oil as well as its country’s independence. Venezuela’s oil, like the rest of the world, is primarily an economic problem.
