Trump promises an oil bonanza in Venezuela, but critics question who will benefit
Interim president claims Venezuela will earn USD 200 billion from its deal with the US. Others suggest billions are being left on the table and environmental damages are unaddressed The post Trump promises an oil bonanza in Venezuela, but critics question who will benefit appeared first on Dialogue Earth .
Donald Trump hailed his August agreement with Venezuela's interim government as "the biggest oil deal in world history." The arrangement grants control of 17 oil fields to US entities, including North American Blue Energy Partners (NABEP), a company partially owned by Venezuelan Alejandro Betancourt and the US Office of Strategic Capital.
Blue Energy Partners will invest $100 billion and aims to increase production from 200,000 barrels a day to 500,000 by the end of 2028. The deal includes 65 billion barrels of oil, roughly 20% of Venezuela's total reserves, concentrated in both undeveloped "greenfields" and mature "brownfields." Acting President Delcy Rodríguez claimed the deal would generate over USD 200 billion for Venezuela, primarily through royalties and taxes.
However, critics argue there may be untapped revenue due to a lack of public auctions and transparency. The path to this deal began when the US captured former President Nicolás Maduro in January, leading to the approval of a new Hydrocarbons Law that allowed for private commercialization of oil fields. The Orinoco Oil Belt, spanning 55,000 sq km, is central to the deal, holding 300 billion barrels of extra-heavy crude, a type notoriously challenging to extract due to its viscosity and density.
Critics also point to potential environmental impacts and the lack of a plan to mitigate these effects. While the deal promises billions in revenue, some estimates suggest Venezuela may have left billions on the table by not holding an auction for the rights. Oil economist Asdrúbal Oliveros warns of Venezuela's limited infrastructure and lack of legal guarantees for investors, which could deter major capital investment.
He maintains that real economic improvement depends on how the oil revenue is used to improve development, jobs, and well-being for Venezuelans.
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