(NewsNation) — President Donald Trump on Saturday said the United States would take control of Venezuela’s oil reserves after special forces captured Venezuelan President Nicolás Maduro and his wife, Cilia Flores, on Jan. 3.
It has been central to conversations since the U.S. extracted Maduro.
Venezuela has the world’s largest oil reserves but currently produces about 1% of all global oil, according to Yahoo Finance, due to nationalization measures implemented by former Venezuelan President Hugo Chávez.
Ultimatums issued by Chávez led to the exit of major companies like ExxonMobil and ConocoPhillips, resulting in declining production and outdated infrastructure.
Venezuela produces 900,000 barrels daily, potentially increasing to 1.5 million in 18 months at a $7 billion cost, according to an estimate put forth by oil operations professional Ali Moshiri in The New York Times.
The Orinoco Oil Belt holds significant untapped reserves of heavy crude and could prove beneficial for American refineries.