Former President Donald Trump asserted that the United States could maintain long-term control over Venezuela’s oil infrastructure, while calling for a significant increase in defense spending to sustain strategic dominance. The remarks come amid heightened geopolitical tensions and shifting energy dynamics in Latin America.
- Trump claims U.S. could retain control over Venezuela’s oil reserves for up to 10 years
- 297 billion barrels of proven oil reserves in Venezuela are central to the strategic discussion
- Proposed 35% defense budget increase to reach $1.8 trillion annually by 2028
- Deployment of up to 15,000 U.S. military personnel and 800 surveillance assets in the region within five years
- Potential reactivation of Venezuela’s refining capacity could add 1.2 million barrels per day to global supply
- Defense contractors LMT, RTX, and NOC saw stock gains of 4.2%, 3.7%, and 5.1% on January 9
Former President Donald Trump declared on January 8, 2026, that U.S. military and economic leverage could secure American control over Venezuela’s oil reserves for a decade or more, citing the country’s deteriorating state and declining production capacity. He argued that current instability in Caracas, combined with reduced operational output at PDVSA—the state-owned oil company—creates a strategic opening for sustained U.S. influence. Trump specifically referenced a 2025 U.S. Department of Defense assessment indicating that Venezuela’s oil infrastructure could be stabilized under foreign management with minimal long-term investment, a claim echoed by several defense analysts in private briefings. The statement coincided with Trump’s renewed call for a 35% increase in the defense budget, proposing an annual allocation of $1.8 trillion by 2028. He emphasized that expanded military readiness would be essential to protecting energy assets and deterring regional challenges, particularly from China and Russia, which have increased their presence in South America through infrastructure and energy partnerships. According to internal projections cited in the remarks, the U.S. could deploy up to 15,000 military personnel and 800 surveillance assets to the Caribbean and northern South America within five years to safeguard critical energy corridors. The potential U.S. control over Venezuela’s oil—estimated at 297 billion barrels of proven reserves—could influence global oil markets, especially if production levels rebound under foreign management. Analysts note that even partial reactivation of the country’s refining capacity could add up to 1.2 million barrels per day to global supply, potentially lowering oil prices by 10–15% over a three-year period. Meanwhile, the proposed defense expansion would affect defense contractors such as Lockheed Martin (LMT), Raytheon Technologies (RTX), and Northrop Grumman (NOC), whose stock prices rose 4.2%, 3.7%, and 5.1% respectively in early trading on January 9. Markets reacted with caution, as investors assessed the geopolitical risks of expanded U.S. military engagements in Latin America. Crude oil futures (WTI) dropped 2.3% on the day, while Latin American sovereign bond yields—particularly in Colombia and Brazil—spiked 18 and 22 basis points, respectively, reflecting concerns over regional instability.