US Claims Control of Venezuela's Oil Reserves, Fueling Latin American Resource Politics
The US government has proposed a plan to take control of Venezuela's oil reserves, claiming it will more than double American oil reserves. The plan involves partnering with Alejandro Betancourt, a Venezuelan investor and middleman, to invest $100 billion in Venezuela's oil industry over 25 years.
The deal would target up to 17 fields in the Maracaibo area and extra-heavy oil in the Junin region, covering 1.5 million barrels per day of output. Venezuela would receive an estimated $209 billion in taxes, or about $19 per barrel at an assumed oil price of $65.
The US government's claim on Venezuelan oil reserves is seen as a deliberate provocation by many, particularly given the country's history of nationalizing its oil industry. Venezuela has been exempt from Opec output limits under the Opec+ arrangement and will take years and tens of billions of dollars to reach even two million bpd.