The United States has declared full control over the country’s state power and energy sector after a successful military operation to capture Venezuelan President Nicolas Maduro and his wife, bringing to the fore a renewed discussion about the reasons for the US interest in Venezuelan oil.
Experts say the main reason for this interest is the type of oil and its strategic advantages. While the United States has vast oil reserves, it is mainly a light ‘sweet crude’, which is suitable for producing gasoline but has limited use in heavy industry. In contrast, Venezuelan crude is heavy and dense, which, through refining, can be used to produce a variety of products, including diesel, asphalt, and fuels for industrial plants and heavy machinery.
In addition, Venezuela’s geographical proximity to the United States means transportation costs are low. According to the U.S. Energy Information Administration, Venezuela has at least 303 billion barrels of crude oil reserves, about one-fifth of the world’s reserves.
However, despite its vast reserves, the country’s daily oil production is relatively low—an average of about 1 million barrels per day. As a result, Venezuela’s share of the international market supply is only 0.8 percent. According to analysts, these vast reserves and industrial heavy oil are the main focus of US strategic interest.