Trump's Venezuela Oil Deal Sets Stage for Global Competition

The United States has taken a significant stake in Venezuela's oil reserves, more than doubling its territorial oil reserves. The deal involves North American Blue Energy Partners (NABEP), which holds concessions to develop 17 oil fields and is expected to raise billions in private capital to scale production.

According to energy analysts, the agreement is unlikely to displace Canadian crude in the near term, as Venezuela's oil industry needs enormous investment to raise production. Canada currently supplies about two-thirds of U.S. crude imports, sending around 4 million barrels a day south.

However, others argue that Canada should not underestimate the deal's significance and implications for Canada. 'The U.S. is the world's largest oil-producing nation, and they have just gained increased access and control over one of the largest known oil reserves on the planet,' said Lisa Baiton, CEO of the Canadian Association of Petroleum Producers.

Goldwyn distinguishes the NABEP arrangement from Venezuela's broader reforms and moves by established oil producers. He expects such activity to add approximately 150,000 to 200,000 barrels per day, with growth beginning next year and continuing for five to eight years.