Trump Plan Risks Derailing Venezuela's Oil Recovery

The Trump administration's plan to secure direct U.S. access to Venezuela's oil reserves could derail the country's long-awaited petroleum revival, according to Ron Bousso, a columnist for Reuters.

The proposal, unveiled on Monday, would see Washington acquire a 35% equity stake in private oil firm North American Blue Energy Partners (NABEP), controlled by Venezuelan businessman Alejandro Betancourt. NABEP would receive a 100-year lease on 17 Venezuelan oilfields holding an estimated 65 billion barrels of reserves.

The U.S. would receive a guaranteed 20% share of production at cost and retain a right of first refusal to purchase all remaining output, making NABEP the world's second-largest private oil company by reserves. The arrangement aims to help the U.S. create new supply chains in the Western Hemisphere.

Bousso argues that this plan carries significant risks, including hampering the recovery it seeks to encourage. A two-tiered market could be created, with NABEP enjoying privileged commercial terms while competing companies face structural disadvantages.