US President Donald Trump's administration is working on an agreement that would secure long-term access to a portion of Venezuela's oil reserves.
The potential deal could allow American companies to operate several Venezuelan oil fields, provided the extracted crude is guaranteed to be supplied to the United States. The matter is being discussed at the highest levels of government in both countries. Under one of the options being considered, the territories would be leased and subsequently distributed to American companies through separate tenders. A special list has already been finalized, including 17 fields located in the Orinoco Belt and the Lake Maracaibo region.
However, the plan could face major legal hurdles. Current Venezuelan law simply does not provide for such a leasing mechanism for oil territories, and the country's Constitution reserves core activities in the sector exclusively for the state.
Washington seeks to ensure a steady flow of crude to its own refineries and encourage American investment in Venezuela's energy sector. At present, the country produces approximately 1.25 million barrels of oil per day.
Furthermore, the deal is being negotiated against the backdrop of growing political pressure in the US over high gasoline prices as the upcoming November midterm elections approach. Cheap supplies and increased production volumes could help reduce fuel prices.
These negotiations directly reflect Washington's drive to stabilize the domestic fuel market at all costs during the pre-election period. Ensuring energy security has now become a top priority, for which the US appears ready to strike even complex political deals.
The main question remains how the parties will circumvent Venezuela's constitutional prohibitions. Finding legal formulations and working out leasing mechanisms for the oil fields will reveal the extent to which Caracas is prepared to make concessions in exchange for American investment.
