Is it really the biggest oil deal in recorded history?
Well, it’s big enough:
“At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority US control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer,” the president wrote.
“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, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity,” he added.
This was not on my bingo card when I voted for Trump in 2024. But if it’s actually true, it’s quite a development.
From Rubio:
“For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela’s economy,” the secretary of state said.
Win/win? Too good to be true?
I had a college roommate who was an American born in Venezuela, whose father worked in the oil industry there. That’s how I learned, long ago, that the US had been instrumental in developing that country’s oil production, although the Venezuelans always owned the oil fields. You might say it was a mutually beneficial relationship, but Chavez ended it and also instituted other changes that deeply harmed the industry. The blows came from many decisions of Chavez’s; you can find much of the history here.
As for “Highly Respected” Interim President of Venezuela, Delcy Rodriguez, she seems to be willing to deal.
You might say it was a mutually beneficial relationship, but Chavez ended it and also instituted other changes that deeply harmed the industry.
An anecdote follows. In 2007, Caracas Chronicles had news of a blowout on a drilling rig in Anaco, in Eastern Venezuela. The rig was lost. Either there or from other sources I found a photo of the rig substructure. I wondered if lack of maintenance was a factor. My drilling experience was decades away, so I emailed a former Petroleum Engineering professor of mine for clarification. I don’t recall what he said about that specific photo, but “seared in my memory” was his adding that in his professional duties, for years he had made inspection trips of Venezuelan oil infrastructure. He had noticed in recent years a decided deterioration in maintenance. Maintenance? What’s that? That was one consequence of Hugo Chavez’s successful takeover of PDVSA in 2003.
I could go on and on…..
“Run to fail” is the opposite of preventative maintenance but usually “run to fail” isn’t an option when the fail is very expensive or deadly, but socialism, aka, “someone else’s problem,” rules out that consideration.
I came here to see what Gringo would say. Thanks, Gringo. A lot of work will be required to rebuild the industry to American standards.
For political reasons only, Carney blew up the US – Canada trade nogotiations.
I have read that:
1) It is related to Quebec
2) It is related to wanting the GOP to lose in the 2026 elections hence Carney hiring an American as Chief of Staff: Maia Johnson. Maia worked for Hillary, Joe and Kamala. She and Carney hate Trump
Carney, I have also read was counting on certain points of leverage and a major one was the 4 million of barrels of heavy oil from Alberta going to the US. How could we possibly replace our Number source of oil imports that Canada now provides.
Well, Trump just took care of that angle as Venezuela oil is also heavy.
That leaves maybe potash and uranium ore as bargaining chips except a new potash mining facility is now being built in the US. Forget the 2nd biggest Canada to US export – autos and trucks because they are built by US companies that can and will relolcate across the border.
That pretty much leaves Canada with maple syrup and hockey sticks.
The good news for Alberta as well as Canada is that Carney is now forced to build East going and West going oil pipelines from AB to BC for export and from AB to Ontario for local use. Why is that significant? Because for years he was a WEF Global Warming fanatic and he’s now got to disown it. He will also be forced to increase mining and a lot of other dirty lines of business so that Canada prospers as it last in OECD Growth the last 10 years.
So my theory is that Carney blew up the trade negotiations so he had the perfect excuse to convince the Canadian public that he now has to chuck Climate Change, build huge pipelines because of that evil Donald Trump and that is the real reason he sabotaged the trade negotiations in which case Carney, as much as I detest him, is pretty clever and also a world class hypocrite.
John Galt III: Yeah. Carney is a world-class hypocrite. Right up there with, uh, The Don.
Betsey still on that TDS….
Betsybounds:
How clever and original, as usual.
Betsybounds:
Oh, I forgot one essential word, “Not.”
From Neo’s link:
Trump is here exaggerating, to say the least. US oil companies—plus Royal Dutch Shell— built the Venezuelan oil industry beginning in the early part of the 20th century, but by the time Venezuelan oil was nationalized in 1976, most of the oil company employees in Venezuela were Venezuelan nationals. Until Chavez took over PDVSA in 2003, PDVSA was one of the few well-run Third World government oil companies.
In the 1990s @ $10-20 oil, PDVSA entered into partnerships with foreign oil companies to help develop the heavy oil in the Orinoco basin. In 2007, @ $100 oil Hugo Chavez gave the foreign oil companies the choice to get out or accept a lower percentage of oil revenues. Exxon got out, Chevron stayed.
That being said, I would prefer having blowhard Trump–a blowhard who tends to back up his words with actions— instead of Carney as the leader of my country. As then-Celtics Coach Pitino said in a previous century, Abraham Lincoln isn’t walking through that door.
Richard Cook: “TDS” has multiple definitions; it can also be the diagnosis for people who think Donald Trump is endlessly brilliant, error-free, and possesses unequaled ability to master every possible situation to Creation’s ultimate and unquestioned benefit. Now, THAT is DERANGEMENT.
Except Betsybonds attributes those fantastic qualities to which of neo’s readers?
Is she mistaking Our Lord and Savior, Jesus Christ, with that flawed human, President Trump?
Betsyboynds tries The Humpty Dumpty argument with “TDS.” TDS is what she says it is, but not what she has.
Well, Betsybounds/Richard Cook, interesting but totally false strawman re Trump.
The ardent supporters of Trump that I know, and I know many and count myself as one, see Trump’s huge flaws and lament them, but have enough common sense (which you and your ilk lack) to realize that what he actually does dwarfs the fallout from his foibles. At 82 YOA, I can honestly say that in terms of results, he’s the best president in my lifetime.
I just wish he were a bit more humble and less given to intemperate outbursts. Would also like to see him defer to his excellent cabinet members to let them speak more, rather than hogging the microphone most of the time.
But compared to open borders, Green stupidity, export of our manufacturing jobs, DEI, Trans promotion, graft and corruption on a mind boggling scale, hollowed out military, all given to us by the Dem/media/academic/Hollywood cabal, he can say whatever he wants whenever he wants, in my book.
Betsybounds
TDS does not have multiple definitions. The Donald is responsible for everything bad. And I define what is bad. It’s usually style based (expression, bombast, language, hyperbole) seldom policy based. Always emotional. Logic does not compute with TDS sufferers. It’s all consuming. They’re very thoughts are poisoned by Darth Trump. Y’all need jackets that make you hug yourself.
Re Bill @ 6:12 pm:
Your text following “Interesting but totally false strawman re Trump.”
is such a well written explanation, wrt my feelings.
Those 3 body paragraphs are golden!
Ditto, ditto, and ditto!!
Thank you!
But what will keep some future socialist leader from nationalizing the oil infrastructure again?
I hope there is something in Trump’s deal more concrete than good feelings, along the lines of, “Any attempt to repeat the Chavez experiment of appropriating the American-provided facilities will be considered an act of war.”
Despite the recent experience in Venezuela, there will always be another liar promising Paradise and delivering Hell.
“Experience keeps a dear school, but fools will learn in no other” is a true proverb; the corollary, sadly, is that “Those who do not learn from history are doomed to repeat it.”
When a generation is not even taught history in the schools of Academia, they are doomed to attend that of Experience.
And drag the rest of us along with them.