US-Venezuela Tensions Escalate Over Oil

Stephen Miller, White House deputy chief of staff and a top aide to President Donald Trump, has suggested that Venezuela’s oil reserves legally belong to the United States, describing the nationalization of the South American country’s petroleum industry as “theft.” His comments intensify already heightened tensions between the US and Venezuela.

In a social media post, Miller claimed:

“American sweat, ingenuity, and toil created the oil industry in Venezuela. Its tyrannical expropriation was the largest recorded theft of American wealth and property. These pillaged assets were then used to fund terrorism and flood our streets with killers, mercenaries, and drugs.”

While US and British companies were involved in early Venezuelan oil exploration, international law recognizes the principle of permanent sovereignty over natural resources, meaning the oil legally belongs to Venezuela.

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History of Venezuela’s Oil Nationalization

Venezuela nationalized its oil sector in 1976, bringing it under state-owned PDVSA. Later, in 2007, President Hugo Chavez completed the nationalization of remaining foreign projects, effectively ousting companies like ExxonMobil and ConocoPhillips.

Some legal challenges were filed, with a 2014 World Bank tribunal ordering Venezuela to pay ExxonMobil $1.6 billion. Despite ongoing litigation, the Trump administration imposed sanctions on PDVSA in 2019, and has since pursued an increasingly aggressive approach following Trump’s second term inauguration in January 2025.

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Trump’s “Maximum Pressure” Campaign

Trump has escalated his pressure campaign against Venezuela, citing both drug smuggling and alleged theft of US assets:

• Oil Blockade: Trump announced a blockade on Venezuelan oil tankers, calling them “sanctioned” and claiming Venezuela had stolen US oil.
• Military Presence: The US has amassed forces near Venezuela and recently seized an oil tanker off its coast, prompting Caracas to denounce the move as “international piracy.”
• Maritime Strikes: Since September, US forces have bombed vessels near Venezuela’s Caribbean waters, claiming they are drug-related. Legal experts argue these strikes may violate international law.

White House Chief of Staff Susie Wiles reportedly told Vanity Fair that the strikes are intended to pressure Maduro:

“Trump wants to keep on blowing boats up until Maduro cries ‘uncle.’”

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Controversial Claims and Industry Interest

Trump and Miller have repeatedly claimed Maduro is linked to drug trafficking, though there is no credible evidence tying him to major narcotics exports. The administration has also labeled the so-called “Cartel de los Soles” a foreign terrorist organization, citing alleged corruption rather than verified criminal activity.

Additionally, private oil companies have reportedly been approached about re-entering Venezuela should Maduro be removed, though interest remains low due to global oil market conditions. Venezuelan opposition leader Maria Corina Machado, a Nobel Peace Prize laureate, has pledged to privatize the oil sector if Maduro loses power.

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Conclusion

Stephen Miller’s assertion that Venezuelan oil belongs to the US highlights the escalating rhetoric and policy tensions between Washington and Caracas. Coupled with oil blockades, military deployments, and sanctions, the Trump administration’s approach has raised both legal and diplomatic concerns, signaling a potentially prolonged confrontation over Venezuela’s strategic energy resources.