Energy experts say control of Venezuelan oil could help restore the Strategic Petroleum Reserve after massive drawdowns under the Biden administration.
By yourNEWS Media Newsroom
The Trump administration’s capture of Venezuelan leader Nicolás Maduro has injected new uncertainty into the Western Hemisphere while creating a potential opening for the United States to rebuild its depleted Strategic Petroleum Reserve and reassert influence over one of the world’s largest oil producers.
Once a major global energy supplier, Venezuela today produces only a fraction of its former output after the oil industry was nationalized under Hugo Chávez, as documented in energy research. Analysts say that if President Donald Trump’s strategy succeeds, Washington could help revive Venezuela’s oil sector and leverage its production to replenish the SPR, according to assessments reported by the Daily Caller News Foundation.
Former President Joe Biden authorized unprecedented releases from the SPR in 2022 as gasoline prices surged to record highs ahead of the midterm elections. Roughly 200 million barrels were sold from the reserve in the months before those elections, and the administration later continued tapping the emergency stockpile in the run-up to the 2024 presidential race.
Energy specialists have repeatedly warned that refilling the SPR after such drawdowns could take decades, with some arguing the depletion posed a serious national security risk.
“The Strategic Petroleum Reserve can serve not only a militarily strategic interest, but also an economically strategic interest,” said EJ Antoni, chief economist at The Heritage Foundation. Antoni argued that rebuilding the reserve could allow the government to set a price floor benefiting smaller producers and U.S. investors during periods of an oil glut.
Most of Venezuela’s crude exports currently flow to China. Some analysts believe that if Trump’s plan to “run” or partner with Venezuela materializes, the United States could redirect those resources in ways that benefit American companies while stabilizing Venezuela’s economy.
Reviving Venezuela’s oil industry, however, carries major uncertainties. Industry insiders have said U.S. companies remain cautious under the current conditions. David Blackmon, an energy policy writer with four decades in the oil and gas sector, said U.S. dominance of Venezuela’s industry could create a major opportunity to refill the SPR, though he cautioned the process would be slowed by bureaucracy and take months to implement.
Trump has repeatedly said he intends to replenish the reserve, including during his inaugural address, where he outlined energy plans. Energy Secretary Chris Wright has also confirmed that a full refill would take years. In November, the Department of Energy announced plans to acquire one million barrels as an initial step.
Some industry sources have noted that U.S. companies have not yet factored Venezuelan oil into SPR refill strategies, emphasizing that reserve replenishment plans are not dependent on Venezuela. Jason Isaac, CEO of the American Energy Institute, said firms would not invest heavily without stronger legal guarantees. “U.S. companies will not commit serious capital to Venezuela without a credible reset on rule of law,” Isaac said.
Diana Furchtgott-Roth, director of the Center for Energy, Climate and Environment at The Heritage Foundation, said expectations of increased Venezuelan supply could help lower prices and make it easier to refill the SPR. She also questioned whether the reserve is still essential. “I’m not sure if we need the SPR at all. The biggest SPR we have is right under our feet,” she said, noting that the reserve was created when U.S. oil production was far lower.
The SPR was established in 1975 after the oil crisis of the early 1970s. Following the shale boom, the United States shed fears of shortages, becoming the world’s top oil producer in 2018.
Trump and his allies have pushed aggressively to expand domestic production, promoting America’s vast oil and gas reserves under the slogan “drill, baby, drill.”
“President Trump’s energy dominance agenda has already brought gas prices down across the country, while gradually replenishing the SPR,” White House spokeswoman Taylor Rogers said prior to Maduro’s capture. She criticized Biden’s policies, saying they drove up costs and “irresponsibly depleted” the reserve.
Trump wrote on Truth Social this week that Venezuela would purchase only American-made products using proceeds from a new oil arrangement. A Department of Energy factsheet released Wednesday said oil sales under the partnership would begin immediately, with an anticipated sale of 30 to 50 million barrels and ongoing transactions thereafter.
Whether Venezuelan oil ultimately plays a central role in rebuilding the Strategic Petroleum Reserve remains uncertain, but experts agree the arrest of Maduro has reshaped the energy and geopolitical calculus for the United States.
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