January 13, 2026
Finance

Trump Declares Venezuela Will Become 'Strong' Again Amid Claims of Massive Oil Influx to U.S.

President Trump asserts unprecedented oil imports from Venezuela following military action, sparking skepticism from experts and industry leaders

Loading...
Loading quote...

Summary

President Donald Trump announced that the United States is receiving enormous volumes of crude oil from Venezuela after a recent military operation that resulted in the capture of Venezuelan President Nicolás Maduro. He stated that the U.S. imports 50 million barrels of Venezuelan oil daily and pledged to help Venezuela regain strength economically. However, the veracity of the oil figures and the feasibility of Trump's plans have been questioned by energy experts and economists.

Key Points

President Trump announced that the U.S. is receiving 50 million barrels of Venezuelan oil daily following a "flawless" military operation capturing Nicolás Maduro.
Trump pledged to help Venezuela become strong again and linked increased oil supplies to lower U.S. oil prices and economic growth.
Data from the U.S. Energy Information Administration and historical Venezuelan production figures suggest the 50 million barrels per day figure is implausible.
Experts like economist Paul Krugman and Exxon Mobil CEO Darren Woods have expressed skepticism regarding the feasibility of Trump's Venezuelan oil plans and investment environment in Venezuela.

During a speech at the Detroit Economic Club, President Donald Trump proclaimed that the United States is currently receiving an unprecedented quantity of oil from Venezuela, subsequent to a "flawless" military intervention earlier this month that culminated in the detention of Venezuelan President Nicolás Maduro. Trump characterized the operation as one of the most successful attacks ever executed and highlighted the subsequent influx of Venezuelan crude oil as a strategic benefit.

According to Trump, the U.S. is importing "millions and millions of barrels of oil," specifying a figure of 50 million barrels daily. He posited that such an abundant supply would help drive down oil prices further in the American market. In his address, Trump emphasized, "Winning is a good thing," underscoring his administration’s intention to cooperate with Venezuela to "make that country strong again." The president also touted the U.S. economy's historic growth and record-high stock market levels, attributing these developments in part to his tariff policies.

However, the numbers cited by Trump raise questions concerning their plausibility. Data from the U.S. Energy Information Administration indicates that global crude oil production averaged approximately 106.3 million barrels per day in 2025. It appears unlikely that a single producer, particularly Venezuela, could be supplying nearly half of that global output to the United States alone.

The historical production levels of Venezuela's oil industry provide further context. The nation's peak oil production, recorded in the early 2000s, was around 3 million barrels per day. By late 2025, production had diminished significantly to roughly 950,000 barrels per day. These levels conflict starkly with Trump's claim of a 50 million barrel daily supply to the U.S.

Trump’s assertions regarding the volume of Venezuelan oil imports were echoed the previous week when he suggested that Venezuela would transfer between 30 and 50 million barrels in what might be a one-time shipment. He indicated that he would control the proceeds from this oil and that such funds would be used to benefit both the Venezuelan people and the United States.

Despite these statements, experts have voiced skepticism about Trump’s vision for Venezuela and the feasibility of such oil transfers. Notably, economist Paul Krugman commented that the U.S. involvement in Venezuela does not appear to be an "oil war," but rather one based on "oil fantasies." Krugman cited the relatively low current oil prices compared to historical levels and pointed out the high breakeven cost of Venezuela’s heavy crude oil, which exceeds $80 per barrel. He concluded that Trump’s plans for Venezuela’s energy assets are likely unrealistic.

At a White House meeting with President Trump, Darren Woods, the CEO of U.S. energy giant Exxon Mobil Corp. (NYSE: XOM), referred to Venezuela as "uninvestable" at present. Woods highlighted the difficulties faced by international companies operating in Venezuela, including prior confiscation of Exxon Mobil’s assets by the Venezuelan government. Despite this, Exxon Mobil’s shares rose 2.02% on Tuesday, closing at $126.54, with continued modest gains in after-hours trading. The stock demonstrates favorable price trends across short, medium, and long terms but scores weakly on momentum and growth metrics according to Benzinga’s Edge Stock Rankings.

Trump's comments reflect an ambitious agenda to capitalize on Venezuela's oil resources and revitalize the nation's stability while reducing domestic energy prices. Nonetheless, the discrepancy between his claims and industry data alongside expert assessments underscores significant challenges ahead.

Risks
  • The claimed volume of Venezuelan oil imports vastly exceeds the country's production capacity, raising doubts about the accuracy of reported figures.
  • Venezuela's high breakeven oil production cost and low current oil prices challenge the economic viability of increased U.S. imports from Venezuela.
  • The Venezuelan government's previous confiscation of foreign energy assets creates an uncertain and risky investment climate.
  • Expert analysis suggests Trump's vision for leveraging Venezuela's oil resources may be unrealistic given market and operational constraints.
Disclosure
Education only / not financial advice
Search Articles
Category
Finance

Financial News

Ticker Sentiment
XOM - neutral
Related Articles
NGL Energy Partners - Growth Is Driving the Rally; Leverage Keeps Valuation In Check

NGL has rallied from the low single digits to near $12 on accelerating revenues and strong operating...

Energy Transfer: Ride the Natural-Gas Tailwind Driven by AI Data Centers

Energy Transfer (ET) is a large, diversified midstream operator sitting squarely in the path of two ...

Equinor (EQNR): A Dividended, Buyback-Supported Long with Reserve and Licensing Upside

Equinor combines scale (2.1 mmboe/d production in 2024, 6.1 billion barrels proven reserves) with gr...

Upstart Holdings Posts Robust Q4 Earnings Growth, Shares Rise in Extended Trading

Upstart Holdings, Inc. reported fourth-quarter 2025 financial results that exceeded analyst expectat...

AstraZeneca Posts Solid Q4 Earnings, Shares Rally Near 52-Week High

AstraZeneca Plc reported fourth-quarter 2025 revenue of $15.50 billion, slightly above expectations,...

Personalis Stock Surges on New Medicare Coverage for Lung Cancer Test

Shares of Personalis, Inc. climbed sharply in premarket trading following Medicare's approval of cov...