Trump Secures Control of Venezuela's $65 Billion Oil Reserves

The Trump administration has announced a deal to secure control of Venezuela's oil reserves, worth over $65 billion. The agreement allows the U.S. to take a 35% stake in Venezuelan oil company CVP, with guaranteed access to 20% of its production at 'production cost.' The deal also grants the U.S. veto power over board appointments and requires a majority of board members be U.S. citizens.

Economist Miguel Tinker Salas questioned the deal's benefits for Americans, saying it would take years for new oil fields to produce and that the deal may not bring significant relief at the pump. Venezuelan interim President Delcy Rodríguez hailed the agreement as a boon for her country, promising $100 billion in investment and $209 billion in tax revenue.

The U.S. government's involvement in the deal is led by the Pentagon's Office of Strategic Capital, which has a nominal function of boosting weapons production. Critics have raised concerns about the ethics of the deal, with Mark Weisbrot noting that previous U.S. sanctions on Venezuela accelerated the decline in oil production.