4 days ago
US set to take majority control of Venezuelan oil wealth
The United States says it will get majority control of a large Venezuelan oil venture.
The venture would cover oil fields with roughly 63 to 65 billion barrels of proven reserves.
A new company could become the second-largest private holder of oil reserves after Saudi Aramco.
The United States would reportedly receive 55% of the venture's effective production.
It would buy the oil at cost and use some of it for fuel supplies and its strategic petroleum reserve.
Venezuela's interim president called the agreement historic and said it could generate $209 billion in taxes.
Critics worry that future US or Venezuelan governments might cancel or reject the deal.
They also say the arrangement could make companies hesitant to invest in Venezuela.
The Trump administration says a US-linked venture will control 55% of output from Venezuelan oil fields.
The proposed venture would receive 100-year concessions covering about 63 to 65 billion barrels of proven reserves.
Production would supply the United States at cost, support its strategic petroleum reserve and meet military needs.
Venezuelan interim President Delcy Rodríguez called the agreement historic and projected $209 billion in oil-project taxes.
Critics warn the arrangement could face legal challenges, political reversals and discourage long-term investment in Venezuela.
- Who
- The United States, the Trump administration, Venezuelan interim President Delcy Rodríguez and private energy investors are involved.
- What
- They announced a proposed venture giving US interests majority control of output from major Venezuelan oil reserves.
- Where
- The agreement concerns oil fields in Venezuela and US petroleum supplies.
- When
- President Donald Trump announced the arrangement on Friday night; the article also says Nicolás Maduro was captured on January 3.
- Why
- The stated goals are to secure US oil supplies, replenish the strategic petroleum reserve, support American military needs and expand US influence in the Western Hemisphere.
Supporters of the agreement
Critics of the agreement
Economic and strategic value
Supporters of the agreement
US officials say the venture would secure petroleum supplies for decades, provide at-cost oil and support the strategic petroleum reserve and military needs.
Critics of the agreement
Critics say the arrangement introduces political risk that could undermine long-term investment in Venezuela's oil industry.
Political significance
Supporters of the agreement
Donald Trump presents the agreement as part of a broader effort to strengthen US influence in the Western Hemisphere and counter China's regional inroads.
Critics of the agreement
Alejandro Velasco of New York University said Venezuela risks becoming a 'playground of US capitalism.'
Durability and legality
Supporters of the agreement
The Trump administration and Rodríguez have described the agreement as secured or historic.
Critics of the agreement
The arrangement could face legal challenges, be abandoned by a future US administration or fail to win recognition from a future democratically elected Venezuelan government.
Key facts
- US output share
- A US official said the United States will control 55% of the joint venture's effective output.
- Reserves covered
- The proposed concessions cover approximately 63 to 65 billion barrels of proven Venezuelan oil reserves.
- Concession length
- The venture would receive 100-year concessions for the oil fields.
- Projected Venezuelan taxes
- Delcy Rodríguez said the oil projects could generate $209 billion in taxes.
- Current production
- Venezuela pumped 1.16 million barrels of oil per day in July, according to a Bloomberg survey.
- Proposed oil uses
- Production would be supplied to the United States at cost, contribute to its strategic petroleum reserve and help meet military needs.
Quotes
Alejandro Velasco
New York University associate professor commenting on the proposed agreement
“At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer.”
livemint.com
“risks becoming a playground of US capitalism”
livemint.com
Sources
Related news
Trump Announces Major U.S. Control of Venezuelan Oil
Trump Announces U.S.-Venezuela Agreement Over Major Oil Reserves
Trump’s Venezuela Oil Deal Puts 65 Billion Barrels In Play
Trump Announces Claimed Historic U.S.-Venezuela Oil Reserves Deal
Trump Announces Claimed Historic Venezuela Oil Deal Amid Price Surge
Trump Claims Historic Venezuelan Oil Deal Amid Major Uncertainties
Anthropic Rebuilds Ties With Trump Administration After Pentagon Feud
Pentagon Turmoil Deepens as Hegseth Tightens Grip on Military
Hegseth’s Canadian Cadet Post Sparks Appearance Controversy
G-20 Summit Disputes Draw Attention as Bond Markets Strain
Trump Nominates Combat Veteran Hung Cao as Permanent Navy Secretary
