Good day all. Since Operation Yoink that removed Nicolas Maduro from power and put him into a holding cell pending trial, things had been getting better for Venezuela. That is, until a major earthquake a month ago caused major damage.
Up until that moment, oil exports had been increasing significantly, as the infrastructure was repaired and improved. Now President Trump has announced a major deal that could significantly fuel prices for Americans. Here are the details from Fox Business News:
President Donald Trump announced a major oil agreement with Venezuela Friday, saying the U.S. has secured majority control of more than 65 billion barrels of the country’s proven oil reserves.
“The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!” Trump wrote on Truth Social.
This is a major deal and in more ways than one. First, Venezuelan crude is very thick, almost like tar. There aren’t many refineries that can process Venezuelan crude oil. Most of those are in the United States. The second thing about this deal is it won’t cost the taxpayers a dime.
Trump said the agreement was reached through Secretary of State Marco Rubio, Secretary of War Pete Hegseth, Venezuelan interim President Delcy Rodriguez and private business “at no cost to the American Taxpayer.”
In the long run, it will probably add revenue to the treasury.
“This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future,” Trump said.
I know that President Trump announced that this oil was now under American control, but I’m not sure what that means. I suspect it means that the United States has the right of first refusal. If we don’t need/want it, then Venezuela sells it on the open market.
Rubio called the agreement a “huge win” for both countries, saying it would secure “stable reserves and low-cost oil” in the Western Hemisphere while lowering U.S. gas prices.
He said the deal would also bring nearly $100 billion in private investment to Venezuela, support thousands of high-paying jobs and help rebuild the country’s economy.
That is something that Venezuela desperately needs. Venezuela has been virtually destroyed economically, first by Hugo Chavez and later Nicolas Maduro. That money is going to go a long way towards rebuilding Venezuela’s economy and it infrastructure.
Venezuelan interim President Delcy Rodriguez said the agreement “will allow for a significant increase in oil production with the participation of private operators.”
“These investments will contribute not only to the recovery and modernization of our industry but also to our country’s economic growth, the energy security of our hemisphere and greater balance in international markets,” Rodriguez said.
Now this deal is NOT going to lower gas prices overnight. This is a long term project and they will stabilize fuel prices over the long term. It’s going to take a few years to repair and upgrade the oil infrastructure in Venezuela. This means that a lot of Americans will also need to come down to help with the rebuilding. My hope is that they are also going to be doing a lot of training so they can hand everything off to local people and leave.
Now there is, as always, a potential fly in the ointment. That fly? It’s the Democrat Party. I have no doubt that if they can do so, they will scuttle this deal. I wouldn’t be surprised if they didn’t hand everything over to the Chinese Communist government. The Democrat are so full of hate for President Trump, The United States of America and anything that will benefit Americans, that I do see them doing everything they can to sabotage this deal.
Still, if they can be kept under control, (Or arrest. Either works), things are going to look up for both countries in the long term. It will be interesting how this, and the apparent defeat of Iran and the announcement that oil shipments are now back to 75% of the pre-Epic Fury level hit’s the markets.
Thatisall
~The Angry Webmaster~
