US Seeks Control Over Venezuelan Oil Reserves Amid Uncertainty

The United States and Venezuela have agreed on a deal that will give the US a key role in Venezuela's oil industry, but it won't lead to lower gasoline prices for domestic consumers anytime soon.

This agreement was reached almost nine months after the US deposed Venezuelan leader Nicolás Maduro. President Donald Trump struck a deal with North American Blue Energy Partners, headed by Venezuelan businessman Alejandro Betancourt, which will have 100-year rights to 17 Venezuelan oil fields with 65 billion barrels of proven reserves.

The US government will have a 35% ownership stake in the company and a guaranteed right to buy 20% of the oil produced without a price markup. Betancourt's company has promised $100 billion in infrastructure investments.

Oil experts say it will take years for Venezuela's oil production to expand significantly, and even then, the benefits for US consumers may be muted. The agreement could lead to a 'paradigm shift' for the global oil market over the medium- to longer-term, but it's uncertain whether the deal will survive congressional scrutiny and the next presidential administration.