The administration announced a deal to take a 55% stake in a new joint oil venture with a private Venezuelan energy company.
The administration announced a deal to take a 55% stake in a new joint venture with a private Venezuelan energy company. This 100-year oil field lease will create the world’s second-largest oil company by total reserves, trailing only Saudi Aramco. The move is intended to provide the assurance needed for American oil companies to invest in Venezuela's oil operations, which have suffered from decades of mismanagement and infrastructure deterioration under previous regimes. Venezuela is a critical source of import for the United States, currently serving as the No. 2 source of imported oil to the US. The new venture will control 65 billion barrels of oil reserves, more than doubling the United States' current oil reserves. This direct ownership by the government signals a clear path for private sector investment, potentially accelerating the investment timeline for major oil companies. While the US remains a world leader in crude production, the heavy, sour oil from Venezuela is particularly well-suited for American refineries. The deal aims to be a long-term economic boost for both the US energy security and the Venezuelan economy.