The US finalized a historic oil deal with Venezuela.
US Energy Secretary Chris Wright recently visited Caracas to finalize a strategic oil deal that would give Washington control over approximately 20% of Venezuela's oil reserves. This move aims not only to double production but also to serve the White House's geopolitical calculations and electoral agenda.
Speaking upon his arrival in Caracas, Secretary Chris Wright affirmed that the new series of agreements would help "more than double Venezuela's oil production in the next few years," creating opportunities for development for both countries. At the same time, the American energy giant Chevron is also expected to announce plans to expand its operations there.
Earlier, President Donald Trump announced the agreement would give the United States majority control over 65 billion barrels of verified oil reserves. Secretary of State Marco Rubio revealed that the US Department of Defense would hold a special account to take over the assets and attract private capital to restore 17 oil fields, areas previously largely controlled by Russian and Chinese companies.
The agreement was approved by the Venezuelan National Assembly amidst mixed reactions. Some opposition lawmakers abstained from voting because they had not been given access to the detailed written terms. "We have a duty to know exactly what is written in the clauses," emphasized lawmaker Luis Emilio Rondon. However, National Assembly President Jorge Rodriguez defended the agreement, arguing that the money would directly benefit the people. On the military side, Defense Minister Gustavo Gonzalez Lopez declared full support, asserting that transforming political disagreement into economic cooperation was "a peaceful choice, not submission."
According to the published terms, the U.S. government will hold a 35% stake in North American Blue Energy Partners (NABEP), Venezuela's second-largest private oil and gas company, and will have the right to purchase 20% of the oil it produces at cost. U.S. citizens must hold a majority on the board of directors, giving Washington veto power and de facto control.
U.S. officials assert that Washington's control will end corruption in Venezuela's declining oil industry and prevent Caracas from continuing to provide energy supplies to Cuba. Internally, lowering oil prices is a top priority for the Trump administration ahead of the crucial midterm elections in November. Reducing energy costs is seen as a key leverage point for the Republican Party to maintain control of Congress.
