Despite being the globe's number one oil producer and a major exporter, the United States under the Donald Trump administration is actively seeking to secure crude oil from Venezuela. This pursuit is driven not just by a strategy for energy market dominance and price control, but by the specific, viscous nature of Venezuelan oil itself.
The Refinery Mismatch: Why Light US Oil Isn't Enough
The core of the issue lies in a fundamental mismatch. The bulk of oil pumped from US shale formations is light and "sweet"—meaning it has low viscosity and low sulphur content. However, a significant portion of America's refining infrastructure, especially the complex facilities along the US Gulf Coast, was built in the last century to process a very different product: heavy sour crude.
This type of crude, which is thicker, denser, and high in sulphur, was historically abundant from domestic conventional fields and nearby nations like Venezuela, Mexico, and Canada. Retooling these expensive, capital-intensive refineries to primarily handle light oil is not financially viable. Therefore, to operate efficiently, they must continue importing heavy crude, even as the US exports its own light oil at a premium.
Venezuela's crude is a perfect fit for this existing machinery. Securing large volumes of it at low prices is a compelling economic proposition for Washington, especially since heavy sour crudes are typically cheaper than the light sweet varieties.
A Relationship Thick with History and Geopolitics
Venezuela was a primary crude supplier for the US until the early 2000s, with American oil majors deeply entrenched in its industry. The relationship soured as state control increased under Hugo Chavez, leading to asset nationalizations that saw companies like ExxonMobil and ConocoPhillips exit in 2007. Underinvestment, corruption, and mismanagement crippled Venezuela's output.
By 2018, US imports of Venezuelan crude had plummeted to about a fourth of their late-1990s peak of 2 million barrels per day (bpd). Full US sanctions in 2019 halted flows entirely until a limited license was granted to Chevron in early 2023. By the end of 2025, imports remained below 150,000 bpd.
This vacuum was filled by China and Russia, which invested billions in Venezuela's oil sector. Now, with the political shift in Caracas, the future of those supplies is uncertain. Experts suggest much of Venezuela's oil could be redirected to US refineries, reducing American dependence on other heavy crude sources and simultaneously curtailing Chinese and Russian influence in the region—a clear geopolitical win for the Trump administration.
The Heavy Lift Ahead: Billions in Investment Needed
Reviving Venezuela's oil industry to meet US demand is a monumental challenge. Although the country sits on the world's largest proven oil reserves—over 300 billion barrels—its current production is a mere 1 million bpd, just a third of its output at the turn of the century.
Energy intelligence firm Rystad Energy estimates that returning to late-1990s production levels of 3 million bpd could take until 2040, requiring an investment exceeding $180 billion over 15 years. An initial boost of 300,000-350,000 bpd might be possible within three years, but sustained growth demands massive, long-term capital.
American oil companies, however, are approaching with caution. At a meeting with President Trump on January 9, 2026, executives from ExxonMobil and ConocoPhillips avoided firm investment commitments. ExxonMobil CEO Darren Woods stated that under current conditions, Venezuela is "uninvestable," citing the need for major legal, commercial, and hydrocarbon law reforms, along with durable investment protections, before considering a return.
Thus, while the "heavy" attraction of Venezuela's crude for US refineries is strong, turning this geopolitical opportunity into a steady, increased supply hinges on overcoming decades of decay and convincing wary investors that the risks are worth the reward.
