Trump’s Venezuela deal leaves $100 billion question unanswered

U.S. President Donald Trump is touting a deal that would grant the United States a stake in 65 billion barrels of Venezuelan oil as a significant achievement. This move, according to Trump, promises to reduce gasoline prices and refill depleted crude reserves. However, it remains uncertain whether this strategy will yield the desired outcomes during his tenure in office, if at all.

The administration's push for this deal emerged from growing impatience with private oil companies, including industry giants ExxonMobil Holdings and ConocoPhillips. These companies were not demonstrating sufficient urgency in ramping up oil production in Venezuela, as reported by individuals familiar with the situation. By initiating a new venture directly under U.S. control, the administration aims to instill greater confidence in producers to commit to developing the 17 oil fields in question.

Yet, the White House has not disclosed the source of the anticipated $100 billion investment required for the deal. While it is clear that this sum will not originate from taxpayers, the private entity collaborating with the U.S. on the venture, North American Blue Energy Partners, lacks the financial muscle to contribute such a substantial amount independently.