A recently announced oil agreement between the United States and Venezuela, spearheaded by former President Donald Trump, has sparked significant controversy. The deal grants the US majority control, specifically 55% effective output, of a new private company that will operate oil fields in Venezuela with an estimated 65 billion barrels of proven reserves. This agreement, which includes an ownership stake and the right for the US to purchase oil at cost, is intended to supply the US strategic oil reserves and military, with Trump claiming it will help lower gas prices for Americans. Venezuelan interim President Delcy Rodriguez stated the agreement involves the development of 17 fields, could attract over $100 billion in investment, and is projected to generate more than $209 billion in taxes for Venezuela.
While Venezuela's ruling United Socialist Party (PSUV) has publicly supported the deal, viewing it as a way to overcome US sanctions and stimulate economic recovery, the agreement has faced strong opposition from various factions. American Democrats, including Senators Chris Van Hollen and Tim Kaine, have vehemently criticized Trump, alleging that he is risking US service members for personal profit and the benefit of "billionaire buddies" and "Big Oil companies." They accuse Trump of using the ouster of Nicolas Maduro to "control Venezuelan oil" and question whether the deal will truly benefit American consumers.
Simultaneously, the deal has ignited outrage among Venezuela's opposition, who label it a "predatory" acquisition and a "massive land grab." Exiled opposition figures and economists like Ricardo Hausmann and Francisco Rodríguez argue that the interim government under Delcy Rodríguez, who was Maduro's former vice president, lacks the constitutional authority to negotiate such an agreement. They contend that transferring Venezuela's oil wealth to the US under duress is detrimental to the Venezuelan populace and violates the nation's constitution, drawing parallels to historical instances of foreign control over natural resources. Journalist Luz Mely Reyes mockingly referred to the concession as "the deal of the century."
