Upcoming elections put US-Venezuela oil deal at risk
“We don’t know if this contract is going to survive a change in government in the US,” Michael McCarthy, CEO of political risk firm Caracas Wire, told Semafor.
The first million barrels of oil from the US-Venezuela deal have begun flowing into Texas, lauded by Trump as a "gift" given without cost. However, this partnership may be jeopardized by upcoming elections in both nations. North American Blue Energy Partners, a partially government-owned oil company led by Venezuelan businessman Alejandro Betancourt, is accelerating production.
They have introduced a sixth oil rig and announced that their Western Venezuela fields are producing 115,000 barrels per day. Nevertheless, operating in Venezuela presents challenges. There is a scarcity of skilled oil workers, and recruiting them back from abroad is proving difficult. CEO of political risk firm Caracas Wire, Michael McCarthy, expressed uncertainty regarding the deal's survival under potential shifts in US government.
Democrats in the US are doubtful about the deal's legality and might investigate it if they secure a victory in the midterms. Additionally, Venezuela's ongoing democratization process could also cast doubt on the contract. María Corina Machado, a prominent political figure who recently returned from a 10-month exile, has stated that Betancourt would not be a viable economic partner if she were in government.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
