US Secures Access to Venezuela's Vast Oil Reserves in Uncertain Deal

The United States has reached an agreement with Venezuela to gain access to its vast oil reserves. Under the deal, the U.S. will get 55% of the company's effective output, but it is unclear what portion comes from ownership and how much from the right to buy oil at cost.

Venezuela has room to increase its oil production, which could be a boon for the U.S., according to Kevin Book, managing director at ClearView Energy Partners. However, he noted that investments of this scale don't happen quickly and will likely take many years to deploy.

The reaction from Venezuelans is mixed, with some viewing it as a betrayal of their government's repeated statements that Venezuelan resources are for Venezuela alone. Harvard University professor Ricardo Hausmann called the deal 'shameful' and said Venezuelans will not respect it.