Trump Deal Draws Skepticism as Chevron Expands Venezuelan Operations

Oil giant Chevron has confirmed it will expand its operations in Venezuela, just days after President Donald Trump announced a deal to develop the nation's oil reserves and give the Pentagon a stake in the profits.

The Venezuelan Constitution states that such arrangements must be approved by the National Assembly, which has not happened. Ian Vásquez, vice president for international studies at the Cato Institute, wrote: 'The deal lacks legitimacy since it was agreed to with a dictatorship that has clung to power for decades through violence and by committing what was probably the largest electoral fraud in Latin American history.'

Energy Secretary Chris Wright promoted the deal on CNBC, saying: 'What we're doing is increasing the confidence for private businesses to come do deals in Venezuela, directly with the government of Venezuela, and possibly also with the partnership between NABEP.'

Analysts are skeptical, saying it will take years to revive Venezuela's oil industry. Questions remain about whether Venezuela's acting President Delcy Rodríguez has the legal authority to give the company 100-year rights over 17 oil fields with reserves of 65 billion barrels.