US control of 65 billion barrels of Venezuelan oil could reshape reserves, says economist

Political economy professor Hassan Obeid believes that the US gaining control of over 65 billion barrels of Venezuela's oil could bolster the nation's strategic reserves. In an interview with Al Arabiya FM, Obeid detailed the potential economic advantages for the United States from securing more than 65 billion barrels of Venezuela's oil reserves.

He stated that this development could assist in replenishing the US's strategic reserves. However, Obeid cautioned that it would take three to five years for the Venezuelan oil to be processed in refineries and become market-ready. He also pointed out that Venezuela's oil sector was nationalized before Hugo Chavez's presidency, during which American companies were expelled from the industry.

Since then, the sector has suffered from mismanagement and corruption. The current production of oil hinges on upgrading both Venezuelan and US refineries, as the oil is heavy and necessitates specialized processing.