What U.S.-Venezuela Oil Deal Is – And Is Not
The agreement is a long-term strategy to bolster U.S. energy security as production from greenfield acreage could take 7 to 10 years to start.
- On Friday, August 28, the U.S. and Venezuela announced a deal granting the U.S. control over a potential 65 billion barrels of proven reserves, immediately sparking speculation regarding the agreement's strategic motives.
- Officials describe the arrangement as a long-term play to replace imports from unfriendly nations with volumes from a geopolitically significant asset, with the U.S. securing a 100-year lease to bolster Western Hemisphere energy security.
- While the U.S. produces upwards of 20 million barrels of crude daily, domestic refining capacity remains persistently tight, and greenfield acreage involved in the deal will likely take 7 to 10 years to bring into production.
- The deal does not offer near-term impacts to lower gasoline prices or replace crude imports from China-friendly Canada, nor will oil prices immediately plummet to $60 per barrel as a result.
- With U.S. shale production expected to eventually peak and the domestic refining industry unable to sustain operating at 96% capacity indefinitely, this initiative addresses long-term supply sustainability and energy security risks.
16 Articles
16 Articles
JUST IN: President Trump posts that his generational 65 billion barrels of oil deal with Venezuela puts CANADA "ON NOTICE," along with OPEC
JUST IN: President Trump posts that his generational 65 billion barrels of oil deal with Venezuela puts CANADA "ON NOTICE," along with OPEC"REALIGNS global energy"Join @SGTnewsNetworkX (Twitter)▪️Truth Social
US Seeking 100-Year Deal To Make Venezuela Its Gas Pump – Media
Washington could gain access to 90 billion barrels of oil reserves, while Caracas is weighing an OPEC exit The US is moving to lock in long-term access to the world’s largest proven crude oil reserves by discussing a 100-year deal with Venezuela, as Caracas plans to leave the Organization of Petroleum Exporting Countries (OPEC), several outlets have reported. The idea of quitting OPEC has been discussed during talks with US officials, according …
Venezuela has one of the largest oil reserves in the world, with an estimated 303 billion barrels of crude oil in the country. That's about 17% of the world's reserves.
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