Trump Announces US Takes Majority Control of Venezuelan Oil Reserves

Donald Trump announced last week that the United States is taking majority control over approximately a fifth of Venezuela's oil reserves.

The White House stated this deal secures their energy dominance for the next century. On Wednesday, September 2, Energy Secretary Chris Wright met with interim president Delcy Rodríguez in Caracas, celebrating the new oil deal. North American Blue Energy Partners (Nabep), a Barbados-registered company led by Alejandro Betancourt López, will oversee the production and sale of 17 oil fields, which contain an estimated 65 billion barrels of crude.

The US government will hold a 35 percent stake in Nabep and possess veto power over board appointments. The Pentagon's Office of Strategic Capital will also acquire a 35 percent ownership stake in the new private extraction entity and rights to buy 20 percent of the output at cost. Secretary of State Marco Rubio negotiated the agreement with Rodríguez.

Trump claimed the US is making a fortune from the oil and has paid for the war many, many times, also stating the deal "MORE THAN DOUBLES American Oil Reserves." Critics have likened the situation to a mugger calling your wallet a gift. Maduro was captured in January, and Trump allowed Rodríguez to remain in power.

Betancourt has a history of business dealings with the Venezuelan government since Hugo Chávez's presidency and has faced investigations in five countries, though he has never been convicted. Oil prices increased after the deal's announcement, partly due to ongoing hostilities over the Strait of Hormuz. Developing Venezuela's oil fields and increasing output could require years and a hundred billion dollars in new investment. A 1950 US Department of State document indicated that US policies toward Venezuela are influenced by the objective of ensuring an adequate petroleum supply.