Trump Administration Targets Venezuela Oil Reserves in Ambitious Deal
The Trump Administration's recent announcement about taking majority control of Venezuelan oil has sparked both excitement and skepticism. President Trump claimed that the deal would involve the administration working with private companies to rebuild Venezuela's decaying energy industry, with the United States holding a 55% share of the venture.
The proposed deal would more than double the reserves under U.S. control, which currently total around 46 billion barrels. Venezuela has claimed its total reserves are about 303 billion barrels, although many oil experts are skeptical of this figure.
David Goldwyn, president of Goldwyn Global Strategies, a Washington, D.C. energy consulting firm that has worked on Venezuelan issues, noted that Venezuela was the world's largest producer of crude oil from the 1920s through 1965, but that its industry was nationalized in phases starting in the 1970s.
The deal would also likely require approval from both the U.S. Congress and the Venezuelan government, with many unknowns still surrounding the arrangement. The Trump Administration has not provided details on how the deal would work or what private companies are involved.