US-Venezuela conflict: Can Donald Trump repay $38 trillion US debt through Venezuela's oil reserves? Explained

US-Venezuela conflict: In a significant development that stunned the entire world, the US carried out a large-scale military strike against Venezuela on Saturday morning. US President Donald Trump announced the US attack on Venezuela from his social media handle Truth Social.

The US President also announced that Venezuelan President Nicolas Maduro and his wife have been captured and flown out of the country. After the successful US military operation, President Donald Trump said the US planned to tap Venezuela's vast oil reserves to sell to other nations, which triggered speculations about the benefits the US administration is looking at by getting control over Venezuela's 303 billion proven oil reserves.

US debt: Figures that matter

According to experts, the current US debt stands at $38.4 trillion, posing a significant challenge to the US administration, which must pay $1 trillion in interest annually, as the US government is required to pay 8% annual interest on this existing debt.

Venezuela's oil reserves, US debt arithmetic?

"Oil exploration is an institutional investment, and it takes time. Today, only one US company, Chevron Corporation, is operating in Venezuela. To gain complete control over Venezuela's oil reserves, it would take at least three to four years to establish the infrastructure that an oil company requires for oil exploration. This investment must come from the stakeholders, which is currently the US government. So, before minting money from Venezuela's proven oil reserves, the US government is facing an uphill task to set up an infrastructure that an oil company needs before starting the oil exploration business," said Amit Goel, Chief Global Strategist at Pace 360.

The Pace 360 expert noted that Venezuelan oil is also heavy. The crude oil available in Venezuela contains a high quantity of sulphur. So, this requires an additional expense to remove the high sulphur content at oil fields. Therefore, the input cost for oil exploration in Venezuela would be higher. Secondly, Venezuelan oil sells at a discount of $7-8 per barrel against WTI crude oil due to its high sulfur content. So, the output from Venezuelan crude oil would also be less.

Asked about the returns that the US government would get once they manage to set up the oil exploration infrastructure, Balaji Rao Mudili, Research Analyst at Bonanza, said, "The US national debt reached $38.4 trillion in late 2025, and they are now spending roughly $1 trillion per year just on interest payments. Venezuela holds the world’s largest proven oil reserves (approx. 303 billion barrels). Even if production were restored to its peak of 3.5 million barrels per day and sold at $60 per barrel, the total annual revenue would be roughly $76 billion, which is less than 8% of the annual interest on the U.S. debt, leaving the $38 trillion principal untouched."

Hence, the control on Venezuelan oil provides a cushion to the US, but it does not entirely solve the massive US debt problem.

Venezuela's oil reserves net worth

Venezuela's oil reserves are 303 billion barrels. One barrel is costing around $56.50 in the international market these day. So, 303 billion crude oil in Venezuela is worth $17119.50 [(303 x 56.50] billion or $17.1195 trillion. In this calculation, we have not taken into account the $7 to $8 per barrel discount at which Venezuelan crude oil is sold in the international market.