From Venezuela to Iran, U.S. actions bring it closer to vast oil reserves

The U.S. is the world’s largest consumer of oil. And the two countries affected by recent U.S. actions rank among those holding the largest proven crude reserves on the planet.

Data from the Organization of the Petroleum Exporting Countries shows Venezuela holds the world’s biggest proven reserves, estimated at more than 303 billion barrels. Iran ranks third with about 208 billion barrels, behind only Saudi Arabia.

On paper, the U.S. military actions against these two countries were justified differently.

In Venezuela, Washington accused President Nicolás Maduro of leading a drug cartel and repeatedly portrayed the country as a source of deadly narcotics entering the U.S. Officials also described Maduro as responsible for mass migration into the U.S. and accused his government of exploiting American oil interests.

Iran, meanwhile, was framed as a security threat. U.S. Secretary of State Marco Rubio said Washington knew Israeli action was imminent and that the U.S. had to act “pre-emptively” against expected Iranian attacks on American forces.

But both countries also sit on vast oil reserves at a time when the U.S. remains heavily dependent on crude.

The U.S. consumes about 20.6 million barrels of oil a day. Roughly 40 percent of that — about 9.1 million barrels — is used to power motor vehicles. The country imports around half of its daily crude supply, more than 10 million barrels a day.

Will Trump do to Iran what he did with Venezuela?

In late February, U.S. and Israeli strikes on Iran triggered the most serious regional crisis in years. The attacks killed Iran’s Supreme Leader and targeted military and strategic sites across the country, drawing Tehran into direct confrontation with Washington and its allies.

Iran is not only a regional power but also one of the world’s largest oil producers. Any disruption to its energy sector reverberates through global markets.

At the same time, Washington has moved to rebuild Venezuela’s oil industry with the help of American firms.

The U.S. Department of State said the Trump administration has issued a series of licences allowing U.S. companies to market Venezuelan oil, supply essential production inputs and repair the country’s ageing oil infrastructure.

One licence authorises firms incorporated in the U.S. to market Venezuelan crude to buyers around the world, including largely in the U.S. Payments must be made on commercial terms and deposited into accounts in the U.S. overseen by the State and Treasury departments.

Other licences allow U.S. companies to sell diluent needed to produce Venezuela’s heavy crude and to provide equipment and services for the oil and gas sector. Additional authorisations permit negotiations on new upstream investment projects.

Washington has said the measures are designed to rebuild Venezuela’s energy sector after years of instability and mismanagement.

The State Department said revenues from the oil trade will be handled transparently and used for the benefit of the Venezuelan people, while the investments are intended to help modernise the country’s energy infrastructure.

U.S. officials have also framed the policy in terms of energy security.

Interior Secretary Doug Burgum said Venezuela — once heavily sanctioned — is becoming a “strategic ally” with the world’s largest oil reserves. Venezuelan crude, he said, could help stabilise fuel prices in the U.S. and reduce vulnerability to disruptions elsewhere.

Venezuela’s state oil company, Petróleos de Venezuela S.A., has already signed new contracts to supply crude and refined products to refineries along the U.S. Gulf Coast.

Taken together, the developments place the world’s largest oil consumer closer to two of the biggest oil reserves on earth — one through renewed energy ties in its own hemisphere, the other amid escalating conflict in the Middle East.