Venezuela holds roughly 300 billion barrels of proven oil reserves, the largest in the world. Crucially, much of this oil is heavy crude, which is thick, expensive to extract, and harder to refine than light shale oil. Years of sanctions and underinvestment left Venezuela without the advanced infrastructure — such as steam injection — needed to produce it efficiently.
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This matters because the U.S. has quietly become highly dependent on heavy crude. In the 1980s, only about 10–20% of U.S. crude imports were heavy oil. Today, that figure is closer to 70%. At the same time, Texas and Louisiana host some of the largest heavy-crude refineries in the world, specifically designed to process this type of oil.
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In other words, Venezuela doesn’t just have oil — it has the kind of oil U.S. refineries are built to run.
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That helps explain the strategic focus. In the short term, sanctions, damage, and political risk can disrupt supply and push prices higher. Over the long term, if Venezuelan infrastructure is repaired and production recovers, heavy crude from Venezuela could replace other sources and lower global oil prices modestly— though that process would likely take years.
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Beyond oil, Venezuela also sits next to critical shipping lanes connecting the Caribbean Sea and Gulf of Mexico to U.S. refineries and global trade. Control and stability in this region affect not just energy, but freight costs, insurance, and supply chains across the Americas.

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