Venezuela Oil Accord Unlikely to Deliver Promised Benefits
The proposed U.S.-Venezuela oil accord claims to give Washington control over 65 billion barrels of oil, but analysts argue that figure is inflated and the deal will not lower U.S. gas prices or refill the Strategic Petroleum Reserve. The agreement is seen as a mix of crony capitalism and imperialist ambition. It is unlikely to deliver the promised benefits.
The proposed accord would grant a Barbados-based firm, North American Blue Energy Partners, control over Venezuelan oil reserves, with the White House claiming 65 billion barrels. However, the company’s leader, Alejandro Betancourt, has faced corruption investigations in multiple countries, though he has never been formally charged. The deal follows a January U.S. military operation that changed Venezuela’s leadership, and Trump has previously expressed regret over not seizing Iraq’s oil.
Historical precedent suggests such agreements rarely endure: no foreign oil concession in Venezuela has survived a full presidential term since 1976. Even if implemented, the accord would not impact gasoline prices in the near term, nor would it address the depleted Strategic Petroleum Reserve, which was drained under both Trump and his predecessor. Analysts view the deal as combining crony capitalism with imperial ambition, with modest, risky, and costly potential dividends.
This agreement could shape public perception of U.S. foreign policy, particularly if it fails to deliver promised energy benefits. Voters facing high fuel costs may see it as political theater, while international observers might view it as a precedent for resource-driven intervention. The involvement of a controversial businessman could also raise concerns about corruption in diplomatic dealings, potentially affecting trust in government institutions and bilateral relations with Venezuela.