United States and Venezuela Agree to Exploit 65 Billion Barrels of Oil

The White House announced on August 31 a new agreement to promote the development of Venezuela’s oil reserves, as part of President Donald Trump’s strategy to revive the South American country’s energy industry. The deal calls for the creation of a joint venture between the United States and North American Blue Energy Partners (NABEP), a company owned by Venezuelan businessman Alejandro Betancourt.

The agreement grants the new company 100-year rights to 17 Venezuelan oil fields, which have estimated proven reserves of 65 billion barrels. According to the White House, several of these fields were previously linked to Russian and Chinese companies.

One of the key elements of the agreement is the direct participation of the U.S. government. The Pentagon’s Office of Strategic Capital will hold a 35% equity stake in the joint venture, while the United States will also have the right to purchase up to 20% of the oil production at cost.

The agreement was signed by U.S. Defense Secretary Pete Hegseth and Secretary of State Marco Rubio. The White House said the deal will come at “zero cost” to the United States and that the government will have veto power over the members of the board of directors, a majority of whom will be U.S. citizens.

NABEP, for its part, has committed to making $100 billion in new investments aimed at oil infrastructure. The company says it has more than 5,000 employees and approximately 10,000 contractors, as well as more than 15 years of experience in Venezuela’s oil industry.

Replenishing the United States Strategic Oil Reserves

President Donald Trump has described the agreement as an opportunity to tap into Venezuela’s enormous energy resources and turn the country into a new oil powerhouse in the Western Hemisphere.

Trump has also said that Venezuelan oil could help replenish the United States’ strategic crude oil reserves, which have come under pressure due to disruptions in the international energy market. In addition to fuel, the president emphasized that Venezuela’s heavy crude can be used to produce asphalt and other products.

However, the agreement will not have an immediate impact on gasoline prices. Trump acknowledged that U.S. consumers may have to wait before seeing a reduction. Analysts and former U.S. energy advisers have warned that restoring Venezuela’s oil production could take several years because of deteriorating infrastructure and political risks.

Political Risks to the Agreement

The deal also faces questions about its long-term stability. Energy experts have pointed out that future administrations in both Venezuela and the United States could seek to modify or challenge the agreement.

The White House said the operation will be governed by U.S. law and will fall under the jurisdiction of U.S. courts. It will also have U.S. auditors, lawyers, and advisers.

Meanwhile, Venezuela’s interim president, Delcy Rodríguez, endorsed the agreement, saying it will allow the country to modernize its deteriorating oil industry and accelerate its recovery. In response to criticism that the deal could result in a loss of control over the country’s natural resources, Rodríguez said Venezuela’s sovereignty remains guaranteed.

The agreement represents one of the most significant moves by the Trump administration to restore Venezuelan oil production and strengthen U.S. control over one of the world’s largest crude oil reserves.