The U.S. naval blockade of Venezuela has cost $700 million already—and is rising by $9 million daily
Trump is urging U.S. oil companies to return to Venezuela but question marks remain with instability, high costs, and weak oil prices.
The ongoing U.S. naval blockade of Venezuelan has cost an estimated $700 million and counting with two more oil tankers seized Jan. 7, as President Donald Trump aims to sell more Venezuelan crude oil to American refineries and convince U.S. oil companies to return to embattled nation.
Operating the USS Gerald R. Ford and its aircraft carrier strike group costs more than $9 million per day—adjusted for inflation—since being ordered to Latin American waters in October, according to a prior report from the Center for a New American Security. Those costs do not account for the boat strikes that began in late August—killing more than 100 people thus far—or the Jan. 4 attacks in Venezuela that resulted in the arrests of leader Nicolás Maduro and his wife.
Trump has argued the U.S. does not want a prolonged occupation so long as Maduro’s vice president and now-acting president, Delcy Rodríguez, defers to the U.S. And he is pushing for U.S. oil companies to work in Venezuela to rebuild the dilapidated industry and get oil and dollars flowing again.
The White House did not refute the financial numbers of the blockade nor provide additional information, with spokesperson Anna Kelly saying in a statement that Maduro’s arrest saves American lives, stops the flow of drugs and criminals, initiates a deterrence in the Western Hemisphere, and creates economic opportunities for Venezuelans and Americans.
David Goldwyn, Atlantic Council fellow and State Department special envoy for international energy affairs in the Obama administration, told Fortune that Trump is operating with an “incoherent strategy.”
“A lot has been spent, and little has been gained,” Goldwyn said. “It’s really hard to see what the upside is. Maduro has been removed, but the rest of the regime are all still in place.”
“The prize he’s trying to manufacture of special access to resources for U.S. companies seems to be unwelcome by most.”
Indeed, Trump is scheduled to meet Jan. 9 with oil executives, including leaders from Chevron, Exxon Mobil, and ConocoPhillips. The companies did not respond to requests for comment.
Chevron is the only American oil company operating in Venezuela—under a special license—producing nearly 20% of the country’s oil.
Trump argued the American oil companies are “ready to go in” and spend billions of dollars to rebuild Venezuela’s energy infrastructure and dramatically increase the flow of oil to bring revenues back to Venezuela and the U.S.