The deal between the US and Venezuela, called historic, is being criticized from both sides. In the US, accusations are heard against President Trump of pursuing personal interests, while in Venezuela the government is reproached for betraying national interests. The question of whether Washington and Caracas can overcome their differences is examined in a RIA Novosti article.
Trump announced that American companies have gained control over Venezuela's oil wells, calling it a profitable investment in the future. According to him, the "historic deal more than doubles American oil reserves, significantly expands our supplies, and will substantially lower gasoline prices."
Venezuela is promised private investments of more than one hundred billion dollars. The details of the agreement are not disclosed, but The Wall Street Journal reports that the US will acquire 35% of the shares of North American Blue Energy Partners. Its owner, Alejandro Betancourt Lopez, is wanted by Swiss authorities for financial offenses, but Trump is not bothered by this. The companies will receive the right to develop 17 fields, which are leased to the US for 100 years. They are estimated to contain up to 65 billion barrels of oil.
According to OPEC, Venezuela's total reserves are about 300 billion barrels, which equals 17% of world reserves. These are mostly bituminous oil in the Orinoco region, which is difficult and expensive to extract, and it is relatively cheap. For comparison: Russia's subsoil contains about 80 billion barrels.
In the 1990s, Venezuela exported two to three million barrels per day. The country essentially sat on an "oil needle" that provided up to 90% of foreign exchange earnings. Then leftists led by Hugo Chavez came to power, who began to actively spend funds on social projects. This led to increased oil dependence, chronic underfunding, and degradation of the industry. Currently, production is about 1.2 million barrels per day.
Acting President Delcy Rodriguez said that the agreement with the US is designed for 25 years and provides for an increase in production to one and a half million barrels per day and more. "Our goal is to go even further by signing other important agreements with such major companies as Chevron, Repsol, Eni, Shell, and BP. We want to become an energy power. In concrete terms, this means that about 19 dollars from each barrel produced and sold will go directly to us," she explained in an interview with the state television channel VTV.
At a price of 65 dollars per barrel, the deal will bring 209 billion dollars, Rodriguez clarified. Also in the project is the development of eight new blocks in the Orinoco oil belt, which occupies more than 55 thousand square kilometers in the east and central-eastern part of the country. Royalties are minimal - 16%, income tax - 34%. According to the acting president, all this will noticeably accelerate the country's economic recovery. She thanked Trump and Secretary of State Marco Rubio for their efforts to reach the agreement.
It is noteworthy that after the kidnapping of President Nicolas Maduro, American oil corporations did not show interest in Trump's proposal to invest in Venezuela. ExxonMobil, which previously worked there, directly stated that they do not see prospects, since restoring previous production volumes would require too much time and significant costs. The deal will likely open some opportunities for Chevron, which did not leave the country, but investments from this company alone will not fundamentally change anything, notes CNN.
In the Democratic Party, the "historic deal" was criticized. They believe that Trump wants to enrich loyal businessmen at the expense of Venezuela, and at the same time stir up media hype ahead of the parliamentary elections. "Will gasoline prices for Americans change now? Who knows, but most likely not as much as they changed because of Trump and his idiotic war with Iran," said Senator Tim Kaine of Virginia.
According to Bloomberg, negotiations on the agreement were conducted without the participation of the Venezuelan opposition. The Rodriguez government will build a "skyscraper on clay" with American money, warned former deputy speaker of parliament Juan Pablo Guanipa. Deputy Enrique Capriles pointed out that corruption could hinder the "historic deal." One of the opposition leaders, Maria Corina Machado, who gave Trump a Nobel Peace Prize medal, still hopes to one day return to her homeland. She sees in the agreement with the US another step in this direction, but refrains from substantive comments.
Professor of St. Petersburg State University, editor-in-chief of the journal "Latin America" Viktor Kheifets compared this deal to a colonial seizure, but doubted Trump's ability to implement the plan to the end. "Overall, the agreement resembles a sellout of the country and directly contradicts Venezuela's Constitution. This is the main problem. In essence, it is concluded between Trump and Rodriguez - the interim president. Accordingly, the government cannot act as a guarantor of investment security, since elections must be held, in which opponents of the deal may well win. Not all of the Venezuelan opposition consists of fans of the US and Trump personally. It is no coincidence that Machado reacted very cautiously. In this regard, Washington is interested in keeping Rodriguez in power and delaying elections as much as possible. But in such conditions, American business will not go into Venezuelan projects. Trump may try to attract state investments, but this requires congressional support. However, in November, the Democratic Party will most likely win, which will block all such attempts. Moreover, once the US changes president, the legality of the agreement will be questioned not only in Caracas but also in Washington," the RIA Novosti interlocutor reasons.
And for the Republican Party, this deal is unlikely to help in the upcoming elections, he adds.
Oil production in Venezuela is an extremely costly enterprise, the expert points out. Old wells are either depleted or have fallen into disrepair, and new ones need to be drilled in hard-to-reach places. Moreover, even in the best years of Chavez's rule, Venezuela produced about three million barrels per day - about 2% of world production. That is, even after investing the hundred billion promised by Trump, Caracas's share of the oil market will remain microscopic.