Trump Administration Reaches Oil Deal with Venezuelan Company
The Trump administration has reached a historic oil deal with a Venezuelan company, giving the US access to some of Venezuela's vast oil fields. The deal involves Alejandro Betancourt, a Venezuelan oil baron with a long history of supporting US interests.
President Trump's administration has reached an unprecedented partnership with a Venezuelan oil company, led by Alejandro Betancourt, to access some of Venezuela's vast oil fields. This deal comes at a time when US reserves are low. Betancourt, 46, has a reputation for being a turnaround artist in Venezuela's oil sector and has been involved in various efforts to support US interests in the country, including the operation to remove former strongman Nicolas Maduro.
Betancourt's life story is marked by billion-dollar deals, international intrigue, and a longstanding money-laundering probe. He has been in regular contact with Trump's unofficial Venezuela fixer, Mauricio Claver-Carone, and has discussed how to keep oil flowing and the economy running in post-Maduro Venezuela. In 2019, Betancourt acted as a go-between, linking Maduro's opposition with Venezuelan political figures and top-level military officials to build domestic support for a nonviolent, democratic transition to a Guaido government.
The oil deal gives the US a 35% equity stake and 20% of the after-tax oil at production cost, which is about $30 a barrel. Venezuela receives between 16% to 40% of production, depending on the field, and also gets income taxes. Betancourt's company, North American Blue Energy Partners, gets access to 17 fields and the implied backing of the US military.
Some energy experts have criticized the deal as potentially unworkable and unlikely to lower gas prices anytime soon. Others have denounced the deal as kleptocratic and denounced Betancourt as a corrupt elite. However, Betancourt's attorney, Jon Sale, says his client has been unfairly maligned and is uniquely situated for this moment in history.
Go Deeper
Who is Alejandro Betancourt?
Alejandro Betancourt is a 46-year-old Venezuelan oil baron with a long history of supporting US interests. He has been involved in various efforts to support US interests in Venezuela, including the operation to remove former strongman Nicolas Maduro.
What is the significance of the oil deal?
The oil deal gives the US access to some of Venezuela's vast oil fields, which is significant at a time when US reserves are low. The deal also provides Venezuela with income and has the potential to boost the country's economy.
What is Betancourt's relationship with the US government?
Betancourt has been in regular contact with Trump's unofficial Venezuela fixer, Mauricio Claver-Carone, and has discussed how to keep oil flowing and the economy running in post-Maduro Venezuela. He has also acted as a go-between, linking Maduro's opposition with Venezuelan political figures and top-level military officials to build domestic support for a nonviolent, democratic transition to a Guaido government.
What are the terms of the oil deal?
The oil deal gives the US a 35% equity stake and 20% of the after-tax oil at production cost, which is about $30 a barrel. Venezuela receives between 16% to 40% of production, depending on the field, and also gets income taxes.
How has Betancourt been received by others?
Some energy experts have criticized the deal as potentially unworkable and unlikely to lower gas prices anytime soon. Others have denounced the deal as kleptocratic and denounced Betancourt as a corrupt elite. However, Betancourt's attorney, Jon Sale, says his client has been unfairly maligned and is uniquely situated for this moment in history.
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