Oil and raw materials: what does control of Venezuela mean and how much is the EU losing?

Brussels – Oil, lots of oil, but also lots of natural resources and raw materials, all strategic. Venezuela, no longer independent and sovereign but destined for a US administration, has a subsoil with which to reshape world geopolitics, and it is no coincidence that the forced ousting of Nicolas Maduro opens up such scenarios. The leadership of the arrested president’s socialist leanings is probably the least relevant reason for the star-studded evidence of neo-imperialism, if one looks at the country and what its control would allow.

Oil, how to circumvent OPEC over-power (and sink Cuba)

Venezuela is the world’s largest country in terms of crude oil reserves, estimated at around 300 billion barrels. US President Donald Trump has announced that he wants to manage Venezuela’s oil resources by increasing production and extraction to the benefit of American companies. By increasing supply, he can affect the price of the barrel, driving it down. In this way, oil once again becomes a “cheap” and therefore attractive source compared to more expensive sustainable alternatives. Here is a blow to the EU and its Green Deal, following the agreement on duties. In addition, the United States becomes a de facto member of OPEC, the organisation of oil-producing countries that has managed the world market since 1960. Managing oil also means controlling its sale. The already shaky Cuban economy, without the oil offered by the friendly Maduro regime, now risks a decisive blow. The United States, with one move, redesigns South America and the future of the Caribbean island.

Manganese, tantalum, niobium, rare earths: in USA-led Venezuela, the ingredients of the green deal

“To make the green transition a reality, rare earths are needed, as well as metals such as niobium and tantalum, essential for the defence industry and renewable energy worldwide,” and “are included in the EU’s list of critical raw materials.” In Brussels, this reminder is not new. Well, Venezuela is rich in precisely all this. Controlling the natural resources needed to direct the industrial and production model means influencing the choices of other actors, starting with the European Union. With China rich in rare earths, niobium, and tantalum, Venezuela can become an alternative supplier. The European green transition, assuming it is made, if China does not make it, the United States will.

Again, manganese is used to produce batteries for electric cars. Venezuela boasts reserves estimated at around one million tonnes of this metal, found in the greenstone belts of the Imataca Archaean Complex, in locations such as San Cristobal, La Esperanza, El Palmar, Guacuripia, Upata and El Pao, in the south-east of the country, close to Cerro Bolivar, the highest mountain in Venezuela and rich in iron.

The price of gold continues to rise, and there is no shortage of it in Venezuela—quite the contrary.

Venezuela also possesses notable gold resources, located mainly in the Guyana Shield, in the southeast of the country. The El Callao district is Venezuela’s most important gold mining area, with over 124 tonnes of gold mined, and was once the world’s largest gold mine. Other districts, such as Chilometro 88, Lo Increíble, and Marwani, are rich in the precious metal, a “safe-haven” asset by definition and now even more valuable. The price of gold continues to rise, and those who own it become even richer.