What we do know is that Trump said the U.S. had secured majority control of more than 65 billion barrels of proven reserves in Venezuela. This appears to be possible through the formation of a new company, which is being created by the U.S. and an unnamed private developer in Venezuela. 

The new company has been given the rights to develop 17 oil fields. Initial reports indicated that the deal would have a 100-year concession over the fields. 

Acting President Delcy Rodriguez later clarified that the agreement will last 25 years, with a production target of 1.5 million barrels per day. She said the deal could generate roughly $209 billion in revenue for Venezuela, when using a baseline price of $65 a barrel. About $19 of each barrel produced and sold under the deal will go directly to the country. 

Few details have been released publicly about who the U.S. government will be teaming up with, but several reports have named Venezuelan businessman Alejandro Betancourt as the key negotiator. 

Betancourt leads the private oil and gas exploration and production company North American Blue Energy Partners. 

This firm is believed to be the “unnamed private developer” involved in the deal, with the Wall Street Journal reporting that the U.S. will take a 35% passive stake in the company. Under the deal, the U.S. also plans to purchase 20% of the company’s production at cost, according to the outlet. 

Betancourt was a key intermediary in securing the deal for the Trump administration. According to the Washington Post, he helped increase his company’s production from 18,000 barrels of oil to nearly 200,000 barrels in just two years, likely catching the eye of Trump, who has been seeking to increase Venezuela’s oil output by 50%. 

The backlash: Betancourt’s involvement brings controversy, as the businessman faces allegations of money laundering in Switzerland, Spain, and even the United States. He has not been formally charged, and a Swiss extradition request against him was dropped earlier this year. 

The deal has also been criticized by members of Venezuela’s opposition and ruling parties, with some saying it violated the country’s constitution. 

William Rodriguez, a former member of Congress who represented the ruling United Socialist Party, reportedly called the deal “the greatest oil betrayal in the history of the country,” according to the Financial Times. 

Refilling U.S. reserves: Trump touted the deal further over the weekend, claiming it would help refill the United States’ depleted crude reserves. 

As of this afternoon, the Strategic Petroleum Reserve held about 286.8 million barrels of oil, down 3.1 million since last week. This is the lowest recorded since late 1982. The Trump administration is releasing as much as 172 million barrels amid the war in Iran, with the promise to replace it with about 200 million. 

Experts have been quick to point out that the administration will not be able to replace these barrels with heavy crude from Venezuela, as the SPR facilities were not built to hold this type of oil. According to the Department of Energy, the SPR can hold crude that is of light gravity – 30 to 40° API – and contains less than 2.0 mass percent total sulfur. Venezuelan crude contains between 3-5% sulfur with an API gravity between 8-16°.

All the rest

TRUMP CONDEMNS ANTI-DATA CENTER MOVEMENT: The president this morning criticized the widespread public backlash against data centers, arguing that “China could not be happier with this anti Data Center movement.” 

Trump wrote on Truth Social that communities that reject data centers will end up being “backwards and poor.” 

“If they want to be successful and rich, with far lower taxes and jobs all over the place, let Data Reign,” Trump wrote. “The good news is that there are plenty of other places that want them. If we kill the Golden Goose, you will only have yourselves to blame.” 

Data centers have become a key issue in this year’s midterm elections, with even some Republicans backing more restrictions and moratoriums on data centers. 

Axios reported today that an AI advocacy group, Build American AI, is spending millions in battleground states, starting with Kansas, Ohio, and Wisconsin. The money will go toward ads, grassroots engagement, research, media, and public education. 

TRUMP THREATENS TO HIT IRAN AS FIGHTING RESUMES: Trump has promised to retaliate against Iran after the U.S. and Tehran exchanged fire over the weekend for the first time in a month.  

The U.S. yesterday launched airstrikes on Iranian rocket launchers on Iran’s Larak Island, where CENTCOM said it observed Iranian forces preparing to launch rockets with mines into the Strait of Hormuz. In response, Iran initiated an attack on American bases in Jordan. 

Trump told Fox News this morning that “we’re going to hit them hard. There will be a response.” He continued by saying that Iran wants to meet with the U.S. “so badly,” but questioned whether they could be trusted. 

Separately, the president on Truth Social called Iran a “failed nation.” 

TRUMP HOSTING OIL EXECS TO DISCUSS HIGH GAS PRICES: Trump is expected to meet with oil refining companies tomorrow as the administration looks for more ways to lower prices at the pump. 

A White House official confirmed to CNBC that the president will be hosting the refiners and fuel distributors at the White House. Small, medium, and large refiners and distributors will be represented. Interior Secretary Doug Burgum, Energy Secretary Chris Wright, and National Energy Dominance Council Executive Director Jarrod Agen will also be in attendance. 

The meeting is expected to cover ways on how to increase refining capacity, expand production, and lower gasoline prices. 

As of today, the national average price of gasoline was roughly $4.08 a gallon, according to AAA, up from $3.18 one year ago. 

PALISADES NUCLEAR PLANT IS GETTING FUEL: The Palisades Nuclear Power Plant in Michigan is one step closer to turning back online, becoming the first nuclear power plant in the United States to do so. 

Holtec International announced yesterday that it began the process for loading nuclear fuel into the reactor vessel over the weekend. 

The power plant’s reactor core contains 204 fuel assemblies, including new fuel and partially used fuel. Over the last two years, the facility has undergone extensive inspections, maintenance, refurbishment, testing, and equipment upgrades, Holtec said. 

After completing the fuel loading, Holtec will still need to conduct a series of testing, inspections, and startup activities before declaring the facility fit for operation. 

Once operational, the plant is expected to generate more than 800 megawatts of electricity. One megawatt can usually produce enough electricity to power 400 to 900 homes.

It remains unclear as to when the nuclear facility will officially resume generating electricity. Holtec originally intended to restart the plant by October of last year.

THE SEARCH CONTINUES FOR THOSE MISSING AFTER THE GRAND CANYON FLASH FLOOD: Search and recovery efforts continue in the Grand Canyon after a flash flood swept through over the weekend. 

The National Park Service said today that two bodies have been recovered from the Grand Canyon as 15 people are still missing. 

The flash flood occurred on Saturday along the Bright Angel Creek and the Phantom Ranch area. AccuWeather said that three to four rounds of rain brought several inches of rainfall over several hours. At least 62 people were evacuated from the hard-hit areas in the national park. 

NPS said that the weather may affect the timing and pace of operations, with thunderstorms expected to roll through in the evening that could cause additional flooding and damage. 

The NPS has called on the public to provide information on any hikers or backpackers who were in the area during the time of the flood. Water restrictions were implemented in the South Rim area due to the flood damaging the park’s waterline. 

LG ENERGY TO PURCHASE MATERIALS FROM SMACKOVER LITHIUM: LG Energy Solution has agreed to purchase battery-grade lithium from the Smackover Lithium project. 

LG will purchase 8,000 tons of battery-grade lithium carbonate every year over a 10-year period from the Smackover Lithium project starting in 2029. 

What’s Smackover Lithium? It is a joint venture between Equinor ASA and Standard Lithium Ltd., which is seeking to develop lithium extraction projects in Southwest Arkansas and East Texas. The Smackover region contains lithium resources spanning several Gulf states, including Arkansas, Louisiana, and Texas. 

The LG deal is the project’s second offtake agreement. In March, the project made a deal with Trafigura for 8,000 metric tonnes of lithium per year over 10 years. 

Republican Sen. Tom Cotton of Arkansas applauded the deal between LG and Smackover, saying it would “increase domestic lithium production and bring high-paying jobs to our state.” 

A LOOK AHEAD: 

Aug. 31 – Sept. 2 The Environmental Council of the States holds its annual fall meeting, with EPA Deputy Administrator David Fotouhi as one of the keynote speakers. 

Sept. 1 S&P Global experts will hold a webinar to discuss global supply chains and energy. 

Sept. 1 The House Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade is holding a markup hearing. 

Sept. 1 The Department of Energy will hold a virtual meeting of the National Petroleum Council. 

Sept. 1 The Center for Strategic and International Studies will hold a virtual webinar on the implications of the Strait of Hormuz closure on China’s energy strategy. 

Sept. 1 – 3 The Center for Resource Solutions will be holding its Renewable Energy Markets conference in Washington, D.C., this week. 

Sept. 2 The House Natural Resources Subcommittee on Federal Lands is holding a legislative hearing. 

Sept. 3 The House Energy and Commerce Subcommittee on Environment will hold a hearing on legislation to address data center water usage. 

Sept. 3 The Henry L. Stimson Center will hold a virtual discussion on a second life for electric vehicle batteries. 

Sept. 3 The Center for Progressive Reform holds a webinar taking a closer look at the upcoming Suncor v. Boulder case. 

RUNDOWN

Politico Is electricity dimming oil’s political power?

Inside Climate News How North Carolina Wasted the Chance To Fix Hog Pollution

Semafor Nepal disaster highlights climate, geopolitical plight