US tightens grip on Venezuela oil as Trump defends multibillion-dollar deal

U.S. officials defended President Donald Trump's multibillion-dollar oil deal with Venezuela on Tuesday, claiming it would reduce gas prices for Americans and limit Russian and Chinese influence close to Washington. The National Assembly in Venezuela approved the agreement, granting the U.S. control over approximately one-fifth of the nation's oil reserves.

However, there are significant concerns regarding the deal, which comes amid Washington's extensive control over the Caracas government following the ousting of President Nicolas Maduro in January. U.S. Energy Secretary Chris Wright arrived in Venezuela on Tuesday, with the signing of the agreement scheduled for Wednesday. Chevron is set to announce major expansion plans in Venezuela on the same day.

President Trump met with oil executives at the White House earlier, attempting to curb soaring gas prices due to the Iran war. The administration hopes the Venezuela deal could help achieve this goal. White House spokesman Jared Kushner stated on his Truth Social network, "We are unleashing American Energy Dominance!" Secretary of State Marco Rubio, in a Spanish-language YouTube interview, explained that a private company is collaborating with the U.S. to "normalize the Venezuelan economy."

He added that the deal gives the U.S. special access to a percentage of Venezuelan assets, enabling the company to increase production and attract private investment. Rubio highlighted that the "vast majority" of the 17 oil fields were previously controlled by China and Russia.

Opposition lawmakers in Caracas abstained from the vote to approve the U.S. deal, insisting they needed to review the written terms first. National Assembly chief Jorge Rodriguez emphasized that the deal's financial benefits would ultimately help Venezuelans. Defense Minister Gustavo Gonzalez Lopez gave the agreement full military support, describing it as a means to "choose peace over political differences."

The deal would see the U.S. takeover of facilities previously run by Russian and Chinese firms. One controversial aspect is the involvement of Venezuelan businessman Alejandro Betancourt, who runs the private oil company North American Blue Energy Partners (NABEP). The U.S. government will hold a 35% stake in NABEP through the deal, with Betancourt serving on the firm's board of directors.

Betancourt has faced accusations of corruption during Hugo Chavez's socialist administration, but a U.S. official maintained that he is a "proven operator."

NABEP will allow the U.S. to purchase 20% of the oil produced at production cost, while the U.S. government will have veto power over members of the company's board. This arrangement aims to curb corruption within Venezuela's oil industry, prevent Caracas from supplying abundant oil to its ally Cuba, and ensure U.S. control over the industry.

The deal is seen as a means to provide cheaper oil for the Trump administration ahead of the crucial U.S. midterm elections in November, where his Republican Party could potentially lose control of Congress.