A revived proposal from former President Donald Trump suggests leveraging geopolitical influence over Venezuela and Greenland to bolster U.S. energy and rare-earth mineral supply chains, with potential implications for global commodity markets. The plan, though speculative, underscores growing strategic interest in securing critical resources.
- Trump’s proposal targets Venezuela’s 300+ billion barrels of oil and Greenland’s 130,000-ton rare-earth deposit
- Venezuela’s current oil output: ~1.8 million barrels per day
- China controls over 60% of global rare-earth processing capacity
- ExxonMobil (XOM) share price rose 2.3% post-announcement
- LREE stock increased 4.1% amid renewed supply chain focus
- Greenland’s sovereignty and environmental concerns remain key diplomatic hurdles
Former President Donald Trump has introduced a new dimension to his economic growth strategy, proposing expanded U.S. influence over Venezuela and Greenland as part of a broader push to strengthen domestic resource security. The initiative, unveiled in a recent public address, aims to secure access to Venezuela’s vast oil reserves—estimated at over 300 billion barrels—and Greenland’s untapped rare-earth element (REE) deposits, which could supply up to 30% of current global REE demand. These assets are critical for advanced electronics, defense systems, and renewable energy infrastructure. The strategy aligns with ongoing U.S. concerns about supply chain vulnerabilities. Venezuela’s oil production, currently around 1.8 million barrels per day, remains constrained by sanctions and infrastructure decay, but reintegration into U.S.-aligned markets could enhance energy resilience. Similarly, Greenland’s Kvanefjeld deposit holds an estimated 130,000 tons of rare-earth oxides, with potential to support domestic manufacturing of batteries and defense technologies. Proponents argue that securing these resources could reduce reliance on China, which controls over 60% of global rare-earth processing. Markets responded with cautious interest. Shares of ExxonMobil (XOM), a major player in Venezuelan oil operations, rose 2.3% following the announcement, while LREE, a U.S.-based rare-earth producer, gained 4.1%. Green energy infrastructure stocks tied to supply chain security also saw modest gains. Meanwhile, the inclusion of Greenland—a Danish autonomous territory—has sparked diplomatic concern, with Copenhagen emphasizing that any resource development must respect sovereignty and environmental safeguards. While the proposal lacks immediate policy mechanics, it highlights a broader trend: the convergence of foreign policy and economic strategy in the race for strategic materials. The move could influence long-term investment in energy and materials sectors, particularly as the U.S. seeks to close the gap in critical mineral self-sufficiency.