Biggest Oil Deal
Interim leader Delcy Rodriguez assured the public Saturday that Venezuela retains control of its oil under a new agreement that allows the United States significant access to it. The United States will have majority control of 65 billion barrels of Venezuela's proven reserves in what President Donald Trump described Friday as "the biggest oil deal in world history."
"One thing must be absolutely clear: Venezuela retains ownership and sovereignty over its resources," Rodriguez said in a speech on state television. The agreement with the United States aims to turn "cold, inert" resources underground to "a source of social and economic well-being for the people of Venezuela," she said.
Caracas says the deal involves $100 billion in private investment aimed at revitalising the industry in a country with the world's largest proven oil reserves. But a lack of transparency is raising concerns among Venezuelans, including supporters of the government.
"We don't know who this will benefit, whether it's Venezuela or the United States," said Jesus Salazar, a 68-year-old security guard. "I have my doubts, but we'll have to wait and see what happens."
Venezuela's government has operated under intense pressure from the Trump administration since American forces ousted and captured long-time ruler Nicolas Maduro in January. Washington allowed Rodriguez, his vice president, to stay on as interim leader so long as she toes Washington's line.
Petrol and poverty
Oil production rose by 29.8 percent between January and July, reaching 1.2 million barrels per day, still well below the three million barrels per day produced a quarter of a century ago. The US deal aims to restore production to those levels, but analysts agree it would take time.
"The increase in production won't be seen for at least three or four years," said engineer Oswaldo Felizzola, a professor at the Institute of Higher Studies in Administration in Caracas. He welcomed the United States acting as a "guarantor" for investments in Venezuela, which has failed to attract significant capital for more than a decade. "Without this, these fields would not be developed over the next 10 or 15 years," because state-owned PDVSA "does not have the financial resources to do so."