Venezuela Eyes Oil Boom Amid US Investment Deal Hopes
Venezuela's economic fortunes may be changing thanks to an agreement between the US and North American Blue Energy Partners (NABEP) to develop 17 oil fields. The deal has the potential to produce approximately 65 billion barrels of crude oil, with the US set to purchase 20% of the total production at cost price.
US President Donald Trump hailed the agreement as 'historic', but experts are cautioning that the benefits may take time to materialize. Venezuelan opposition leader Maria Corina Machado welcomed the US role in developing Venezuela's oil reserves, but expressed concerns about the current government's capacity to manage the investment, citing a lack of transparency and civil liberties.
According to economist Manuel Sutherland, if the large influx of foreign capital is not managed properly, it could create imbalances in Venezuela's economy. He believes that 'new economic institutions and new rules' will be needed to change the currency, political system, and exchange rate structure.