The United States and Venezuela have reached a preliminary agreement that establishes U.S. majority control over 17 Venezuelan oil fields holding an estimated 65 billion barrels of crude oil reserves. The deal extends for 25 years.
With this transaction, President Donald Trump has dramatically increased energy security for the U.S. and its allies. The U.S. now controls about 7% of global oil reserves. Importantly, the transaction is also a blow against China’s efforts to dominate global natural resources. Over time, America’s control of an additional 65 billion barrels of oil, combined with the still vast reserves remaining in the Permian Basin of the southwestern U.S., will further reduce the geopolitical power Iran can project because of its strategic location adjacent to the Strait of Hormuz.
