Trump's Venezuelan Oil Deal Sparks Skepticism Among Industry Veterans

The White House announced a $100 billion plan to increase oil production in Venezuela, but oil executives and experts are skeptical about its feasibility. The deal grants a 35% stake for the federal government in North American Blue Energy Partners (NABEP), a private company selected to drill in Venezuela.

NABEP gets a 100-year lease for 17 Venezuelan oil fields containing roughly 65 billion barrels of reserves, with the U.S. getting guaranteed 20% of production and first refusal for the rest. Industry veterans warn that the targeted fields will take years to develop and have little faith in NABEP's capabilities.

A high-ranking oil executive called the deal 'way too big' for a company with no credibility, while Alejandro Sucre, a Caracas-based investor, questioned giving 65 billion barrels of reserves to one company. The physical sites also pose logistical challenges, with nearly half the fields isolated from coastal ports and lacking pipelines.

The deal has been criticized for handing a massive contract to NABEP, whose CEO, Alejandro Betancourt, has been embroiled in an international money-laundering probe. A White House official defended the deal, stating that material production will start early next year and could add 50 million barrels to the Strategic Petroleum Reserve every year.