The shift began with the election of Hugo Chávez in 1999,
which marked the start of a new ideological era. His government moved sharply
away from the earlier market-aligned policies and adopted a confrontational
posture toward Washington. This included expropriating foreign oil assets,
reorganizing PDVSA under political control, and forging alliances with Cuba,
Russia, Iran, and later China. These steps weakened commercial ties and
deepened political tensions.
Venezuela’s oil sector also deteriorated due to
nationalization, mismanagement, and underinvestment. Production, once above 3
million barrels per day, fell sharply over the next two decades. As quality and
reliability declined, US refiners increasingly turned to Canada, Mexico, and
domestic shale producers.
Washington responded to Venezuela’s political
trajectory—especially under Nicolás Maduro—by imposing sanctions targeting
individuals, the oil sector, and financial transactions. These sanctions
further reduced the scope for commercial cooperation and pushed Venezuela to
redirect crude flows toward China and other alternative buyers. The result is a
relationship now defined by distrust rather than the interdependence of earlier
decades.
A parallel concern for the United States has been narcotics
trafficking in the region. While Venezuela is not a major cocaine producer, it
has become a significant transit route between Colombia and global markets.
US agencies have accused certain Venezuelan officials of
collusion with organized crime groups. At the same time, the United States
faces a domestic drug crisis driven by opioids, fentanyl, and synthetic
narcotics entering through regional networks. This has elevated drug
trafficking to a major political issue.
Against this backdrop, President Donald Trump’s emphasis on
securing access to strategic crude supplies and cracking down on narcotics
networks reflects a broader domestic and geopolitical agenda.
Energy security, border control, and regional influence
remain high-priority themes in US politics. Venezuela, given its oil reserves
and its role in regional trafficking routes, has become central to these
debates, turning a once-pragmatic partnership into a deeply strained
relationship.
