US administration ordered a naval “quarantine” (blockade) of Venezuelan oil exports to cut off government revenue. This has led to a massive US military buildup in the Caribbean and the interception of tankers, sparking emergency UN Security Council meetings.
Designation as a “Foreign Terrorist Organization” The US government recently designated the Venezuelan state as a “Foreign Terrorist Organization” (FTO), citing alleged links to drug trafficking (“narco-terrorism”).
Escalating Border Dispute with Guyana The long-standing conflict over the oil-rich Essequibo region remains volatile, with Venezuela rejecting recent International Court of Justice (ICJ) rulings. The situation has intensified as the US uses the protection of Guyana’s sovereignty as a strategic reason for its increased military presence in the region.
What is important to know for UPSC Prelims exams?:
- Venezuela has the largest proven crude oil reserves in the world, estimated at 303 billion barrels (2023).
- Type of oil: Predominantly extra-heavy crude oil, which requires advanced technology to upgrade it into lighter, usable oil.
- US sanctions have constrained access to technology and skilled manpower required for extraction and processing
- Venezuela has largely remained dependent on oil exports and has not diversified its export base, which is a key reason for its persistent debt crisis.
- Venezuela is a member of OPEC. (The Organization of the Petroleum Exporting Countries)
OPEC. (The Organization of the Petroleum Exporting Countries)
Total 12 countries – 5 founder members
- Algeria
- Congo (Republic of the)
- Equatorial Guinea
- Gabon
- Iran (Founder Member)
- Iraq (Founder Member)
- Kuwait (Founder Member)
- Libya
- Nigeria
- Saudi Arabia (Founder Member)
- United Arab Emirates
- Venezuela (Founder Member)
Remember – Qatar, Indonesia, and Angola are not members of OPEC; however, they were members earlier.
