Venezuela Nation-Building Project Enters Deeper Phase Amid Stalled Oil Production

The US-Venezuela partnership aimed to boost oil production in Venezuela, but six months on, it has yet to materialize. Despite a significant increase in Venezuelan crude shipments to the US, production has stalled at around 1.1 million barrels per day for three consecutive months. The lack of investment and clear rules is hindering progress.

The forced exit of Harry Sargeant III from North American Blue Energy Partners, Venezuela's second-largest private oil producer, suggests a shift in approach among US officials. Sargeant had been under pressure to divest due to Treasury Department asset freezes and was reportedly unable to find buyers for his stake. The sale to Alejandro Betancourt, a Venezuelan businessman with ties to the White House, may indicate that shady connections are necessary to succeed in Venezuela's oil sector.

However, some see Sargeant's exit as part of Washington's housecleaning efforts as it enters a deeper phase of its Venezuela nation-building project. Since the June 24 earthquake, Rubio and Co. have taken a more hands-on role in Venezuela's day-to-day affairs, with latitude from Trump to shape policy.

The US-brokered talks between Delcy Rodríguez's government and the opposition have led to a joint pledge to renew the top courts and recover gold reserves held at the Bank of England for earthquake relief. The negotiations must deliver results by December, including revamping the electoral council, to pave the way for general elections next year.