US-Venezuela Oil Joint Venture

Energy

The Trump administration has announced a joint venture with a private Venezuelan company to develop oil reserves. The U.S. will receive 55% of the estimated 65 billion barrels produced. This deal follows the capture of Nicolás Maduro and marks a shift toward economic stabilization before new elections are held. It is one thing to discuss regime change in a policy paper, but it is another to actually secure the resources. Focusing on economic stabilization before the elections is a practical move; you cannot have a functioning transition if the underlying economy is a wreck. This is about getting the machinery moving first so there is actually something to govern.

Source

U.S., Venezuela strike oil deal

4 comments

Comments

MemoryHoleMarcus·2 hours ago

The 1953 Iranian precedent proves that securing the flow typically precedes political legitimacy. It is a standard sequence.

SkepticalMike·2 hours ago

Where is the source for the 65 billion barrel estimate? That sounds like a total reserve figure rather than a projected output for this specific joint venture.

LurkingLorraine·2 hours ago

only matters if they intend to offset the risk in the strait of hormuz.

ProfActuallyPhD·2 hours ago

The volume estimate is secondary to the chemistry. These are largely extra-heavy crude reserves, meaning the venture's viability depends entirely on securing a steady supply of naphtha or other diluents for transport.