Video: US energy chief in Venezuela to sign controversial oil deal

US officials defended a contentious U.S.-Venezuela oil deal on Tuesday, arguing it would aid in stabilizing and rebuilding democracy in the South American nation while granting Washington access to strategic crude reserves. The agreement, announced by President Donald Trump last week, gives the U.S. majority control over 65 billion barrels – nearly one-fifth – of Venezuela’s oil reserves.

U.S. officials emphasized that the deal would create a stable economic platform for restoring Venezuelan democracy, which has been absent for nearly three decades under former Presidents Nicolás Maduro and Hugo Chávez. However, the pact has drawn outrage from Venezuela’s opposition, who are frustrated that democracy has yet to fully return to the country eight months after Maduro’s removal by U.S. special forces.

According to a White House fact sheet, the agreement grants U.S.-backed North American Blue Energy Partners (Nabep) 100-year rights over 17 oil fields, touted as "the biggest oil deal in world history." A U.S. official stated that this takeover would provide capital to rapidly ramp up production and generate revenue for the interim government, ultimately benefiting the democratic-elected government.

The justification for the takeover of these oil fields came as Trump met with oil refinery executives to discuss ways to convert crude into gasoline and lower fuel prices for motorists. Energy Secretary Chris Wright was set to visit Caracas, Venezuela's capital, to follow up on the deal, which Trump called a "historic transaction" aimed at filling U.S. strategic oil reserves.

The urgency of the oil deal was heightened by Trump’s decision to go to war with Iran in February, causing fuel prices to soar due to retaliatory actions from Iranian forces closing the Strait of Hormuz. Increased fuel prices have negatively impacted the economy and eroded Trump’s popularity, with a majority of voters disapproving of his handling of the war and the economy.