Venezuela has given more details about its new oil deal with the US, after President Donald Trump said the agreement would put a large part of Venezuela’s oil reserves under majority US control. Venezuelan interim President Delcy Rodríguez explained the deal in a late-night address on state television channel VTV.
Democrats oppose Venezuela oil deal
Rodríguez said the country is contributing more than 100 years of experience in the oil industry, along with its oil resources and infrastructure. The planned production target of more than 1.5 million barrels per day makes the Venezuelan deal especially important for the oil market. Because roughly one-fifth of the world’s oil normally travels through it, the waterway is extremely important to the global oil market. More Venezuelan oil could therefore help increase global supplies at a time when the US and other countries are facing energy pressure.
Rodríguez said the agreement could help revive the Venezuelan economy and increase money flowing into the government. Rodríguez said American capital, technology and operating expertise will be used to recover and develop Venezuela’s oil assets. Rodríguez said these include oil production, new jobs, investment in infrastructure, higher government revenue and more business for local industries. Van Hollen said the deal was not a win for the US. He argued that Trump had put American service members at risk in order to secure Venezuelan oil for wealthy private interests, according to The Hill. He said putting American soldiers’ lives at risk for private profit was a serious failure of Trump’s constitutional responsibilities. Trump says the US has secured majority control over a huge amount of Venezuelan oil reserves, while Rodríguez says Venezuela will retain ownership and sovereignty over its natural resources.
The deal is aimed at bringing Venezuela’s oil industry back to higher production levels. Venezuela will provide the oil and its existing industry and workers. The US will provide the money and technology. Venezuela expects to get several economic benefits from the deal. The Iran conflict has disrupted oil exports through the Strait of Hormuz . The deal has also faced criticism from US Democrats. Sen. Chris Van Hollen, a Maryland Democrat, was among the lawmakers who opposed the agreement. Van Hollen also questioned the use of US military power for the deal. The biggest questions around the deal are now about control, money and production.
Venezuela $209 billion revenue
The deal covers oil reserves of about 65 billion barrels, according to the figures discussed by the Venezuelan government and Trump.
Rodríguez said the actual price could change depending on global oil prices, according to The Hill. Venezuela has much larger total proven oil reserves, however.
