Trump Proposes Using Venezuelan Oil to Replenish U.S. Reserve, Though Feasibility Is Uncertain

On Sunday, President Trump posted on social media that he intends to use oil from his Venezuelan deal to replenish the United States’ strategic petroleum reserve, a goal that appears unrealistic in the near term.

The agreement, announced last week, encompasses roughly 65 billion barrels of Venezuela’s oil reserves and represents an atypical collaboration with a private firm. However, many details are still unclear, creating a significant hurdle for a process Trump says will commence soon.

First, global oil supplies are tight due to the Iran conflict, and the United States has been drawing down its inventory for months to prevent price spikes. The Strategic Petroleum Reserve is now at its lowest level since 1982.

New projects typically require years before yielding substantial oil output, and this is particularly true in Venezuela, where decades of mismanagement and corruption have left much of the energy infrastructure in disrepair.

Moreover, any purchase of oil for the Strategic Petroleum Reserve must obtain congressional approval, including authorization of the necessary spending.

Venezuela holds vast oil reserves, and the portion covered by the agreement is comparable to the United States’ proven reserves, the world’s largest oil producer. To access these reserves, the United States intends to work with the influential and controversial Venezuelan businessman Alejandro Betancourt López, whose family owns North American Blue Energy Partners, the nation’s second‑largest private oil producer.

Source link