Trump’s Venezuela oil grab reprises industry’s neocolonial past
The U.S. exerted outsize power over Latin America and its natural resources through much of the 20th century, stirring popular unrest, coup d'etats and the erosion of democracy.
U.S. President Donald Trump's plan to take direct control of Venezuela's oil reserves is raising concerns that the South American country could become a modern-day resource colony, reminiscent of the banana republics of a century ago. This move, which could pose long-term risks for oil companies operating in the region, was reportedly agreed upon with Venezuela's interim president, Delcy Rodríguez, according to a U.S. official.
The deal grants the U.S. control over more than 65 billion barrels of oil through a partnership with private businesses. Notably, this arrangement includes a 100-year concession over 17 oil fields, making the U.S. entity the second-largest corporate holder of proven reserves after Saudi Aramco, according to the source.
With this development, the U.S. is rekindling its history of neocolonialism in the Latin American oil industry. This strategy of exerting direct control over a nation's resources has often led to long-term economic instability and political instability in the affected countries, as seen in the banana republics of the early 20th century. Oil companies operating in Venezuela under this new arrangement will need to navigate these risks carefully.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
