The Lie of Self-Financing Oil Wars

Published: Sunday, January 4, 2026 at 8:47 pm

US Military Operation in Venezuela Sparks Debate Over Costs and Strategy

Following the capture of Venezuelan President Nicolás Maduro and his wife, Cilia Flores, the United States is facing scrutiny over the financial implications of its military operation in Venezuela. President Trump stated that the operation would be self-financing, drawing parallels to the justification used for the Iraq War.

The military campaign, led by General Dan Caine, involved over 150 aircraft and personnel from law enforcement agencies. Defense Secretary Pete Hegseth reported the raid lasted less than 30 minutes. However, the operation has resulted in significant casualties, with a senior Venezuelan official reporting at least 80 deaths, including civilians and military personnel. The New York Times also reported injuries to US soldiers and damage from bombings in Caracas.

The US's approach has been criticized, particularly in light of a previously offered alternative. According to a Miami Herald report, then-Vice President Delcy Rodríguez proposed a peaceful transition of power last year, which would have preserved political stability. The Trump administration rejected this proposal and continued military actions.

The claim of self-financing wars through oil revenue has been challenged by historical precedent. In 2003, Deputy Secretary of Defense Paul Wolfowitz predicted that oil revenues from Iraq could fund its reconstruction. However, the actual costs of the Iraq War far exceeded initial estimates.

Experts warn of similar financial pitfalls in Venezuela. Linda Bilmes, a Harvard University professor, highlighted the long-term costs associated with military conflicts, including medical care, disability compensation, and debt servicing. Senate Minority Leader Chuck Schumer has announced a vote to block the military campaign.

BNN's Perspective:

The historical context of the Iraq War serves as a stark reminder of the potential financial and human costs associated with military interventions. While the promise of self-financing may be politically appealing, it often fails to account for the complex realities of post-conflict reconstruction and the long-term consequences for both the involved nations and the service members. The US should carefully consider the potential ramifications of its actions in Venezuela, including the long-term financial burden and the impact on regional stability.

Keywords: Venezuela, US military, Nicolás Maduro, oil revenue, Iraq War, financial costs, military intervention, Delcy Rodríguez, Trump administration, casualties, Caracas, self-financing, Paul Wolfowitz, Linda Bilmes, Chuck Schumer

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