I spoke with Al Jazeera on what we know about this new deal between the US and Venezuela.
Trump’s talk of “ownership” is hype aimed at voters. In reality, he is creating reassuring conditions for US firms hesitant to make the big investments required to recover and grow Venezuela’s enormous extra-heavy oil reserves in the Faja del Orinoco region.
In general, the deal seems to follow the outlines of the new hydrocarbon law passed in January by the chavista controlled (and illegitimate) National Assembly. It seems essentially aimed to assure US and other firms that if they invest to develop Venezuelan oil that the US will protect their investments.
US courts will decide contract disagreements, the US Treasury will handle payments, and the US is encouraging repairs and expansion of the dilapidated national infrastructure the oil sector requires as do the people of the country.
On all this, I highly recommend reading the latest article by my old friend, longtime Venezuelan oil-sector journalist and publisher Elio Ohep. Here is the link: https://energiesnet.com/still-unknown-whats-really-behind-trumps-biggest-oil-deal-in-world-history/
– – Tom O’D.
PS I spent two years in Venezuela researching “The political economy of Venezuelan oil under Chavismo” as a US Fulbright scholar and visiting professor at CENDES (Centro de Estudios del Desarrollo) at UCV (University Central de Venezuela), and returned a number of times.
I am available for keynotes, seminars, consults, commissioned analysis, and on-air expert commentary.
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