Venezuela's Oil Deal Undermines Democratic Transition
The Trump administration has made a landmark oil deal with Venezuela's government, giving the US unprecedented leverage over the country's oil production and distribution. The deal, announced in late August and early September 2026, will allow the US to take a 35% ownership stake in North American Blue Energy Partners (NABEP), which controls around 20% of Venezuela's proven oil reserves.
The agreement also guarantees the US 20% of NABEP's oil output at production cost and first refusal on the remaining 80%. This deal is expected to last for 100 years, with a majority of NABEP's board being American citizens. The Pentagon's Office of Strategic Capital will hold the 35% stake.
The Trump administration's primary interest in Venezuela is to integrate its oil into a US-led resource bloc to compete with China. However, the deal currently lacks political legitimacy in Venezuela, making it vulnerable to contestation from opposition forces.