US Grabs Control of Venezuela's Oil Reserves
US President Donald Trump announced an oil deal between Washington and Caracas on August 28, under which a US-backed private venture would hold a 55% stake in Venezuela's oil output from fields across 17 blocks. The deal gives the US majority control of more than 65 billion barrels of proven oil reserves at no cost to American taxpayers.
The agreement is expected to draw nearly $100 billion in private investment and generate over $209 billion in extra tax revenue for Venezuela, according to Secretary of State Marco Rubio, who worked alongside Defense Secretary Pete Hegseth and Venezuela's acting President Delcy Rodríguez to finalize the deal.
Chinese commentators have framed the US-Venezuela deal as a setback for Beijing's energy security, predicting higher fuel costs at home even as Americans pay less. Zhenqing, a Shaanxi-based writer, noted that if Venezuela left OPEC, it would free the country from production quotas and allow Caracas to ramp up output under the agreement.
The deal is seen as part of Washington's strategy to expand its influence in the Western Hemisphere and secure energy dominance. Chinese state media celebrated what they framed as a victory in the US-China trade war, but some pundits saw upsides for China, including help from the US in expanding Venezuelan exports and improving Caracas' finances.