Chevron expands operations in Venezuela as the administration announces a major oil deal to secure 65 billion barrels of reserves
Chevron is expanding its operations in the Orinoco Belt of Venezuela, the Houston-based company said. The expansion follows a recent announcement by the administration that the U.S. will gain access to 65 billion barrels of oil reserves. As part of a joint venture with North American Blue Energy Partners, the U.S. will create a private partnership to develop 17 oil fields. U.S. Secretary of Energy Chris Wright stated that the deal is a milestone for energy production and will eventually lower gas prices for American consumers. However, analysts noted that because Venezuela's infrastructure is currently degraded, the deal will not provide immediate price relief at the pump. The administration announced that the joint venture will provide the Pentagon’s Office of Strategic Capital with a 35 percent stake. The deal also comes as President Trump has encouraged American oil companies to invest in Venezuela's oil operations. While Chevron is currently the largest foreign oil operator in the country, other companies such as Eni and ONGC are also expected to sign deals to increase production.
Sources
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