- Trump announced the deal on Friday night, calling it the 'BIGGEST OIL DEAL IN WORLD HISTORY.'
- The U.S. government and an unnamed private operator formed a new private company with rights to vast, untapped oil fields for 100 years.
- Venezuela's acting president, Delcy Rodríguez, described the deal as a step toward economic recovery and a 'historic milestone in bilateral relations.'
- Democrats criticized the deal, with Sen. Kaine stating, 'this isn't a win' and accusing Trump of putting service members at risk for private profit.
- GOP Sen. (Ohio) defended the deal, arguing it benefits both countries.
- The deal follows the U.S. military's capture of Venezuelan President Nicolás Maduro earlier this year.
- A statement from Rodríguez indicated the deal involves the development of 17 fields with a proven potential of 65 billion barrels.
- The agreement could draw US$100 billion in investment and yield over US$209 billion in taxes for Caracas.
- American purchases of the oil will go toward the U.S. strategic oil reserves along with the military.
- Sen. (D-Va.) accused Trump of using Maduro's ouster to control Venezuelan oil and predicted the deal will pad the pockets of Trump family and Big Oil.
- Kaine questioned whether prices will come down for Americans, noting they likely won't drop as much as Trump has forced them up through his Iran War.
Trump's announcement of a deal for U.S. control over Venezuelan oil has sparked significant controversy. The agreement, which grants the U.S. a 55% stake in a new private company managing Venezuela's oil fields, is projected to attract US$100 billion in investments and yield over US$209 billion in taxes for Caracas.8
Venezuela's acting president, Delcy Rodríguez, hailed the deal as a step toward economic recovery, stating it would modernize the country's oil industry and contribute to its economic growth. The deal encompasses the development of 17 fields with a proven potential of 65 billion barrels of oil, representing around 21% of Venezuela's total proven reserves.37
However, Democrats have criticized the agreement, with Maryland Senator stating, “Let’s be clear: this isn’t a win.” He accused Trump of risking service members' lives for the benefit of private interests, asserting, “Using our troops for a private oil grab is corruption at epic scale!” In contrast, GOP Senator defended the deal, arguing it benefits both nations and prevents Venezuelan oil from going to China at lower prices.
Trump emphasized the deal's potential to double American oil reserves and lower gas prices, claiming it would set Venezuela on a path to prosperity. The transaction follows the U.S. military's actions against Venezuelan President Nicolás Maduro earlier this year amid rising energy costs due to the Iran war.611
“The deal covers 17 fields with 65 billion barrels of proven potential, potentially drawing $100 billion in investment and yielding over $209 billion in taxes for Caracas. It follows the US military's capture of Maduro and comes amid rising energy costs from the Iran war.”
The Globe and Mail
