US Control of Venezuelan Oil Raises Concerns Over Democratic Transition

Venezuela's oil industry desperately needs foreign capital, technology, and competent management. While few would dispute this, the real challenge lies in negotiating a fair political bargain with potential investors.

The United States has secured majority control of more than 65 billion barrels of Venezuela's proven reserves through an agreement with North American Blue Energy Partners. This deal could bring in $100 billion in investment and restore oil production to pre-crisis levels, generating jobs and government revenue.

However, the arrangement raises concerns about the lack of political legitimacy and legal certainty. The interim government, led by Delcy Rodríguez, has promised elections but has not set a date. This creates an incentive for them to maintain power and potentially delay democratic transition.

Critics argue that only a democratically elected government can provide the stability required for sustained investment. María Corina Machado believes that a democratic government is essential for ensuring that oil contracts align with Venezuelan constitutional and legal requirements.