Oil Deal Sparks Tensions Between Caracas and Georgetown

Venezuela's new oil deal with Washington is more than just about oil reserves. It gives US commercial interests exposure on both sides of the Venezuela-Guyana dispute and raises questions for global energy markets.

The dispute dates back to the 19th century, but oil has changed its strategic importance. For Caracas, Essequibo carries historical, territorial, and nationalist significance, while Guyana sees it as a matter of sovereignty and emerging energy production.

Chevron's presence in Venezuela through PDVSA and its acquisition of Hess give the US major commercial interests on both sides of the dispute. This changes Washington's incentives, making stability between Caracas and Georgetown an issue of energy security, investment protection, and future oil supply.