Us sanctions crippled venezuela’s oil industry before military intervention to “restore” it

In a striking case of circular policy-making, the Trump administration has launched a military intervention in Venezuela partly justified by the collapse of the country’s oil industry—a crisis significantly worsened by US sanctions imposed over the past decade.

The dramatic overnight capture of Venezuelan President Nicolás Maduro on Saturday marked an escalation of years of economic pressure that began under the Obama administration in 2015 and intensified dramatically under Trump. What started as targeted sanctions evolved into a full oil embargo by 2019, effectively cutting Venezuela off from global markets despite the country holding the world’s largest proven oil reserves. The sanctions, combined with existing mismanagement and low oil prices, caused Venezuelan oil production to plummet by nearly 80 percent compared to its 2012 peak.

The human cost extended far beyond the oil sector. By blocking Venezuela’s access to international finance and its primary export revenue, the sanctions created what experts called “economic violence,” contributing to an estimated 40,000 additional deaths as the country struggled to import essential medicines and food. The policy reshaped global oil flows, pushing US refiners toward suppliers in Colombia and Mexico while driving other nations to increase their reliance on Russian oil.

Now, the Trump administration plans to “selectively roll back sanctions” and market Venezuelan oil for “the benefit of the American people and the Venezuelan people,” banking proceeds at US government discretion. However, with oil prices near breakeven levels and political instability persisting, few oil companies beyond Chevron appear eager to return to Venezuela’s damaged infrastructure.