CounterPunch Exclusives

CounterPunch Exclusives

Venezuelan Oil Monopolised by Washington: What has Become of the Oil Revenues Since 3 January 2026?

Photograph by Nathaniel St. Clair

On 3 January 2026, the United States launched a military operation against Venezuela, resulting in the capture and detention of President Nicolás Maduro and his wife Cilia Flores, and their transfer to the United States. During this attack, carried out using 150 aircraft, around a hundred people lost their lives, including 32 Cubans who had attempted to protect the country’s presidential palace; the remaining victims were Venezuelans. A few hours after this intervention, Donald Trump announced that Washington now claimed to be temporarily in control of Venezuela and would exploit its oil resources.

This intervention therefore marked a major turning point in Venezuela’s recent history. The Vice-President of the Republic and other officials effectively accepted the situation and submitted to the will of Donald Trump and his administration.  The armed aggression perpetrated by the US military and the submission of the authorities in Caracas have enabled Washington to take control of the country’s oil exports and to seize the accounts into which the revenue from these exports is paid.

This issue is all the more significant given that Venezuela possesses the world’s largest proven oil reserves. For decades, oil has been the country’s main source of foreign revenue. Control over these revenues is therefore a key instrument of economic and political control.

Relatively modest oil revenues prior to the US intervention

It is worth noting first of all that oil revenues recorded prior to the intervention of 3 January 2026. According to data published in March 2026 by the Central Bank of Venezuela, oil exports generated $18.4 billion in 2024 and $18.2 billion in 2025.[1] These figures represent oil export revenues and not the net profit of the state-owned oil company PDVSA or the state’s tax revenues.

These figures are relatively low given the country’s oil potential and reserves. In particular, they reflect the fact that production levels remain significantly lower than in previous decades , the difficulties facing the oil industry, US sanctions and the conditions under which Venezuela had to market its oil.

The contrast with the period following 3 January 2026 is therefore particularly striking.

After 3 January: Washington takes control of exports

Following the capture of Nicolás Maduro and his wife, the Trump administration eased certain sanctions, allowing Venezuela to sell its oil more freely on international markets. However, the revenue from these sales is not freely controlled by the Venezuelan government. It has been channelled into accounts managed by the US authorities. The US presidential decree of 9 January 2026 is particularly revealing.[2] It establishes a mechanism designed to protect Venezuelan oil revenues held in US Treasury accounts. Washington legally presents these funds as belonging to the Venezuelan government, but places them under the custody and control of the US authorities.

Legally, therefore, according to the US framework, this does not constitute a straightforward appropriation of the revenues by the US Treasury. However, the political and economic outcome is fundamental: Venezuela no longer has free control over the revenues derived from its main export. Washington controls their collection, safekeeping and disbursement.

This situation gives the arrangement a distinctly neo-colonial dimension.

Venezuela no longer controls the revenue from hydrocarbons. Washington controls their collection, safekeeping and disbursement. This situation is clearly neo-colonial.

Joaquin Castro, a Democratic member of Congress, told the Financial Times: “Trump’s invasion of Venezuela has been about oil, power and graft from the very beginning, with billions of dollars in Venezuelan oil revenue........

© CounterPunch