Trump Taps Venezuelan Oil for US Strategic Reserves
US President Donald Trump announced that the US will use Venezuelan oil to replenish its Strategic Petroleum Reserve (SPR), which he claimed had been 'virtually emptied' under the previous administration.
The SPR, the world's largest emergency crude oil stockpile, is maintained by the US government to help cushion the economy against major disruptions in oil supplies. Trump has repeatedly criticized the drawdown and pledged to refill the reserve.
Trump described the Venezuelan oil as a 'gift from Venezuela to the people of the United States' and stated that the 'topping out' process would begin shortly.
The US administration has entered a sweeping agreement with Venezuela, which could give America access to vast amounts of the South American country's untapped oil reserves at cost. The deal involves the development of 17 fields with a proven potential of 65 billion barrels and is expected to draw $100 billion in investment into Venezuela's oil industry and yield over $209 billion in taxes for Caracas.