CounterPunch Exclusives

CounterPunch Exclusives

Venezuela Hands Over Much of its Oil Production and Reserves to the United States

US President Donald Trump on August 28 announced via social media a US agreement with Venezuela by means of which a sizable portion of Venezuela’ oil production and oil reserves comes under US control. In a six-minute television address the next day, acting Venezuelan President Delcy Rodríguez commented on Trump’s remarks. Two days later, the text of the agreement had still not been communicated.

Trump indicated Secretary of State Marco Rubio and Secretary of War Pete Hegseth had negotiated with Rodríguez. They “secured U.S. majority control over more than 65,000 million barrels of proven oil reserves in Venezuela …[plus] US majority control over 17 oil fields, at no cost to the American taxpayer.” The agreement, in force for 25 years, calls for US partnership with private companies. It “increases our oil supply, and will substantially lower the price of gasoline for all Americans for many years to come,” according to Trump.

In her remarks, Rodríguez emphasized that the agreement entails US “investment of more than $100 billion, and more than $209 billion in tax revenue for the government.” She claimed that Venezuela, in exchange for its oil, industry, and workers’ expertise, will receive “production, jobs, investment in infrastructure, increased revenue for the government, and productive linkages for domestic industry.” Funding will be available for health care, education, and infrastructure, she indicated.

The agreement stems from the brief but deadly US military invasion taking place on January 3. US troops kidnapped Venezuelan President Nicolás Maduro and National Assembly delegate Celia Flores, Maduro’s wife. They are incarcerated in a New York Prison.

Anticipating the agreement, Venezuela’s National Assembly on January 30 approved a reformed version of the 2001 Hydrocarbon Law. It “roll[ed] back the state’s role in the energy sector in favor of private capital,” according to venezuelanalysis.com. US Energy Secretary visited Venezuela on February 11-12.

The New York Times states that, “To tap into the Venezuelan reserves, the United States plans to collaborate with an influential and polarizing Venezuelan businessman, Alejandro Betancourt López.” His family “controls Venezuela’s........

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