20th and 21st centuries
When oil was discovered in the Venezuelan Maracaibo Basin town of Mene Grande in 1914, Curaçao's economy was dramatically altered. In the early years, both Shell and Exxon held drilling concessions in Venezuela, which ensured a constant supply of crude oil to refineries in Aruba and Curaçao. Crude oil production in Venezuela was inexpensive. Both Shell and Exxon were vertically integrated and controlled the entire industry, from pumping, transporting, and refining to sales. The refineries on Aruba and Curaçao operated in global markets and were profitable partly because of the margin between the production costs of crude oil and the revenues from the sale of oil products. This provided a safety net for losses incurred through inefficiency or excessive operating costs at the refineries.
In 1929, Curaçao was attacked by Venezuelan rebel commander Rafael Simón Urbina, who, with 250 soldiers, captured the fort. The Venezuelans plundered weapons, ammunition, and the island's treasury. They also managed to capture the Governor of the island, Leonardus Albertus Fruytier (1882–1972), and hauled him off to Venezuela on a stolen American ship, Maracaibo. Fruytier was criticized and had to resign as governor. After returning to the Netherlands, he settled for a position as chief inspector in Maastricht. The Dutch increased their military presence on the island.
In 1936 a burning bale of cotton thrown overboard by the crew of MS Colombia, which lay anchored in the Schottegat, caused the oil floating on the water to catch fire. It took days to get the fire under control; houses had to be evacuated, but there were no casualties.
During the Second World War, the island played an important role in the supply of fuel for the Allied forces. In 1940, before the invasion of the Netherlands by Germany, the British occupied Curaçao and the French Aruba. The presence of powers other than the Netherlands alarmed the Venezuelan government given the proximity of these islands at the entrance to the Gulf of Venezuela and the fact they had historically been used as bases to launch incursions against Venezuelan territory. In 1941, US troops occupied the island and built the military airport "Hato". The main purpose of this deployment was to fight against expected future attacks by Axis submarines and potentially long-distance German bomber aircraft. The United States was also concerned over the potential threat of a German invasion of the continental US launched with the aid of German settlers in South America.
In 1942 the port of Willemstad, one of the main sources of fuel for the Allied operations, was besieged by German submarines on several occasions under Operation Neuland. In August 1942, the Germans returned to Curaçao and attacked a tanker before receiving fire from a Dutch shore battery and slipping away. The United States Navy established the Fourth Fleet, which was responsible for countering enemy naval operations in the Caribbean and in the South Atlantic. The United States Army also sent aircraft and personnel to help protect the oil refineries and bolster the Venezuelan Air Force.
In 1954, Curaçao and other Dutch Caribbean colonies were joined to form the Netherlands Antilles. Discontent with Curaçao's seemingly subordinate relationship to the Netherlands, ongoing racial discrimination, and a rise in unemployment owing to layoffs in the Shell refinery led to a series of riots in 1969. A state of emergency was declared after rioters set fire to the Willemstad downtown and the bankers mansions. Protesters had to face the Dutch Royal Navy marines dispatched from the local military base on the island, to quell the rebellion led by charismatic politicians such as Wilson "Papa" Godett and Stanley Browne. The riots resulted in two deaths, numerous injuries and severe property and infrastructural damage in Willemstad. In response, the Dutch government introduced far-reaching reforms, allowing Afro-Curaçaoans greater influence over the island's political and economic life, and increased the prominence of the local Papiamentu language.
Curaçao experienced an economic downturn in the early 1980s. Shell's refinery on the island operated with significant losses from 1975 to 1979, and again from 1982 to 1985. Persistent losses, global overproduction, stronger competition, and low market expectations threatened the refinery's future. In 1985, after 70 years, Royal Dutch Shell decided to end its activities on Curaçao. This came at a crucial moment. Curaçao's fragile economy had been stagnant for some time. Several revenue-generating sectors suffered even more during this period: tourism from Venezuela collapsed after the devaluation of the bolivar, and a slowdown in the transportation sector had deleterious effects on the Antillean Airline Company and the Curaçao Dry Dock Company.
In the mid-1980s, Shell sold its refinery for the symbolic amount of one Antillean guilder to a local government consortium. In recent years, the ageing refinery has been the subject of lawsuits alleging that its emissions, including sulphur dioxide and particulate matter, far exceed safety standards. The government consortium leases the refinery to the Venezuelan PDVSA state oil company.
Continuing economic hardship in the late 1990s and early 2000s resulted in much emigration to the Netherlands.
On 1 July 2007, Curaçao was due to become a country within the Kingdom of the Netherlands, like Aruba and the Netherlands Antilles. On 28 November 2006, the change was delayed when the island council rejected a clarification memorandum on the process. A new island council ratified this agreement on 9 July 2007. On 15 December 2008, Curaçao was again scheduled to become a separate country within the Kingdom of the Netherlands. A non-binding referendum on the move was held in Curaçao on 15 May 2009; 52% of voters supported it.
The dissolution of the Netherlands Antilles came into effect on 10 October 2010. Curaçao became a country within the Kingdom of the Netherlands, with the kingdom retaining responsibility for defence and foreign policy. The kingdom was also tasked with overseeing the island's finances under a debt-relief arrangement agreed upon between the two. Curaçao's first prime minister was Gerrit Schotte. He was succeeded in 2012 by Stanley Betrian, ad interim. After the 2012 elections, Daniel Hodge became the third prime minister on 31 December 2012. He led a demissionary cabinet until 7 June 2013, when a new cabinet under the leadership of Ivar Asjes was sworn in.
Although Curaçao is autonomous, the Netherlands has intervened in its affairs to ensure that parliamentary elections are held and to assist in finalizing accurate budgets. In July 2017, Curaçaoan Prime Minister Eugene Rhuggenaath said he wanted Curaçao to take full responsibility over its affairs, but asked for more cooperation and assistance from the Netherlands, with suggestions for more innovative approaches to help Curaçao succeed and increase its standard of living. The Dutch government reminded the Curaçaoan government that it had provided assistance with oil refinery negotiations with the Chinese "on numerous occasions".
The 2020 COVID-19 pandemic resulted in austerity measures. Curaçao had to impose spending cuts to qualify for additional aid from the Netherlands. As part of the austerity package, the Government of Curaçao announced a 12.5% cut in benefits for civil servants. On 24 June 2020, a group of civil servants, together with waste collectors from Selikor, marched to Fort Amsterdam and demanded to speak with Rhuggenaath. The demonstration turned into a riot, and police cleared the square in front of Fort Amsterdam with tear gas. The city centre of Willemstad was later looted. 48 people were arrested, the city districts of Punda and Otrobanda were placed under lockdown for the night, and a general curfew was declared from 20:30 to 06:00.
Curaçao made its debut at the 2026 FIFA World Cup. It remains the smallest nation by both population and area to ever reach the football tournament, tying with Ecuador 0-0, and losing to Ivory Coast 0-2 and Germany 7-1.