The United States has secured control over 65 billion barrels of Venezuela's proven oil reserves. This significant agreement, announced by former President Donald Trump, aims to substantially increase American oil supply and lower domestic petrol prices.
The deal involves the development of 17 strategic oil fields in Venezuela. It promises nearly $100 billion in private investment and is expected to generate over $209 billion in taxes for the Venezuelan state. Venezuela's interim President, Delcy Rodriguez, hailed the agreement as crucial for her nation's economic revival and modernization of its hydrocarbon industry.
This development follows a period of heightened US pressure on Venezuela, including the capture of its then-President Nicolás Maduro earlier this year. Trump had previously vowed to tap Venezuela's vast oil reserves, the world's largest, to address spiking domestic petrol prices, partly due to conflicts in Iran. The agreement also seeks to bring greater balance to international oil markets, a key concern for global economic stability.
Secretary of State Marco Rubio described the oil deal as a "huge win for both the American and Venezuelan people." He emphasized that the investment would support thousands of high-paying jobs and drive the reconstruction of Venezuela's economy. Trump also stated that the agreement was reached "at no cost to the American Taxpayer."
The agreement grants the US government 55% control of a joint venture with an experienced private operator in Venezuela. This venture holds a 100-year concession to operate in the designated oil fields. The deal's broad scope, which involves direct governance over a foreign country's sovereign national resources, is highly unusual and could face legal challenges within Venezuela. This arrangement appears more extensive than the US-led Coalition Provisional Authority's control over Iraq's oil revenues after 2003.
Venezuela possesses an estimated 303 billion barrels of proven oil reserves, the largest globally. However, its oil production has significantly declined since its peak in the late 1990s. The US has requested its oil firms to invest at least $100 billion to restore Venezuela's oil industry. This deal represents a strategic move to secure energy resources and influence global oil dynamics. The long-term implications for Venezuela's sovereignty and economic independence will be closely watched by international observers and financial markets.