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U.S., Venezuela oil agreement gives U.S. access to vast reserves, critics alarmed

financeAug 30, 202616293

U.S. President Donald Trump announced a deal he called "the biggest oil deal in history," saying the United States and a private partner have secured majority U.S. control of more than 65 billion barrels of Venezuela's proven oil reserves. Venezuela's acting president Delcy Rodríguez described the 25-year bilateral project as development of 17 strategic oilfields with a production target above 1.5 million barrels per day and estimated roughly $209 billion in revenue at a $65 benchmark price, with about $19 per barrel flowing to Venezuela. The Associated Press reports the U.S. government and an unnamed private operator formed a new company granted rights to untapped fields for 100 years and that the arrangement gives the U.S. a 55 percent effective output share, including an ownership stake and rights to buy oil at cost. U.S. purchases are said to be destined for the U.S. strategic petroleum reserve and the military. Experts warned that Venezuela's dilapidated oil infrastructure will require years and billions of dollars to repair, making a rapid production boost unlikely. Democrats in Congress have questioned transparency and the legality of routing Venezuela oil revenue through a Qatar account, and one analysis argued the deal could give both countries reason to forestall a democratic transition.

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