Trump Warns Canada as US Secures Stake in Venezuelan Oil Reserves
US President Donald Trump announced a deal to take control of Venezuela's oil reserves, saying it would be used to refill America's Strategic Petroleum Reserve (SPR) and warning Canada that this move puts them 'on notice'. The deal will grant the US majority control over Venezuela's vast oil reserves, which are estimated at 65 billion barrels.
Venezuela's acting President Delcy Rodríguez described the agreement as a '25-year bilateral project' with the US, aiming to develop new oil fields and increase production targets. However, Rory Johnston, an oil market analyst, questioned the feasibility of this plan, pointing out that Venezuela currently produces only about 1 million barrels per day.
The deal is seen as a signal for Canada to diversify its energy exports away from the US, with analysts suggesting that the Canadian crude industry may face increased competition. Shawn Barber, a retired foreign service officer and ambassador, warned that this move could be a threat to Canada's economic security, saying 'Trump has said America doesn't need and doesn't want our cars, our steel, and our aluminum... With this deal, he's fired a shot across our bow.'