Washington and Caracas announced yesterday, Friday, that they had reached a «historic» oil agreement, granting the U.S. majority control over the exploitation of more than 65 billion barrels of proven crude oil reserves in the Latin American country.
U.S. President Donald Trump Featured via Truth Social, he described this deal as the «largest in world history,» asserting that it «more than doubles»—according to him—U.S. oil reserves.
He also noted that the agreement was reached «in close cooperation» with Venezuela’s acting president, Delcy Rodríguez, and a group of «private companies.».
Caracas confirmed that it had signed a «historic» oil agreement with Washington, with Ms. Rodríguez emphasizing that she «warmly thanks» her American counterpart, Donald Trump, in a statement that published via Telegram.
According to her, the agreement provides for the «development of 17 strategic oil fields,» which potentially contain as many as «65 billion barrels of oil,» and will result in «an investment of more than 100 billion dollars» in the country and «tax revenues exceeding 209 billion for the state.».
«For the people of Venezuela, this agreement will attract nearly 100 billion dollars in private investment, support thousands of well-paid jobs, and help rebuild the economy» of this Latin American country, reported Moreover, U.S. Secretary of State Marco Rubio via X.
Venezuela has the largest proven oil reserves on the planet—estimated to exceed 303 billion barrels. However, its production remains relatively limited at present.
At the same time, U.S. strategic petroleum reserves (SPR) SPR) have fallen to their lowest level since November 1982, according to data from the U.S. Energy Information Administration (EIA).
Washington has committed to gradually releasing 172 million barrels from the 415 million it held in the SPR at the end of February, in order to alleviate the problems caused by supply disruptions and rising oil prices following the outbreak of the ongoing war in the Middle East.
According to Donald Trump, the «historic» deal between the two countries will lead to a «significant reduction in fuel prices» «for all Americans» now and in the «long term.».
The U.S. president also claimed that this agreement «will cost American taxpayers nothing.».
U.S. oversight
Following the bloody U.S. military operation earlier this year that led to the capture of Venezuela’s then-President Nicolás Maduro, Donald Trump is seeking to once again intensify the exploitation of that country’s oil and gas reserves, under his own patronage.
The U.S. government has recently been trying to pressure American companies to do business in that Latin American country, but the results have been meager, as it would require massive investments to restore the country’s oil infrastructure and ramp up the extraction of “black gold.”.
The nationalizations carried out by past Venezuelan governments are also a cause for concern. In particular, there were two nationalizations that affected ExxonMobil.
«The main problem in Venezuela» is «security,» he commented while speaking to French Agency John Kildaff, an analyst at Again Capital.
In his view, Washington will likely seek to create «a kind of state-controlled zone where American companies can set up operations and conduct their business without facing repercussions» and to «eliminate the political risk that usually accompanies investments in Venezuela.».
According to Jorge Pignón, a researcher at the Energy Institute at the University of Texas at Austin, there are still several «blind spots,» particularly regarding the risk that a future Venezuelan government might unexpectedly change the «rules of the game,» thereby calling into question any agreement signed today.
In his view, the oil giants need «stability» and guarantees for the massive investments they make, as he noted in remarks to AFP.
M. Rubio: The oil agreement with the U.S. will attract $100 billion in private investment to Venezuela
The oil agreement reached between Washington and Caracas will result in $100 billion in private investment in Venezuela, U.S. Secretary of State Marco Rubio confirmed yesterday, Friday.
«For the people of Venezuela, this agreement will attract nearly 100 billion dollars in private investment, support thousands of well-paid jobs, and help rebuild the economy» of this Latin American country, reported U.S. Secretary of State Rubio via X.
