Venezuela-US Oil Deal: Can Trump’s Energy Push Revive Venezuela’s Economy?

Moving on, Venezuela is hoping a new wall agreement with the United States can help turn its vast energy reserves into a cash for a country which is struggling with low wages, weak public services and years of economic underinvestment. Interim President Delta Rodriguez says that the deal could help fund housing, health care, schools and jobs, including for thousands of families who are affected by recent earthquakes. But on the streets, Venezuelans are taking a more cautious view, saying the real test will be whether the money actually reaches ordinary people. About a construction site in Laguero, Delta Rodriguez is linking Venezuela's oil wealth directly to the country's recovery. She says the new agreement with Washington can help turn those reserves into funding for homes, infrastructure and basic services. The immense reserves that our country has, which are in the subsoil, stop being an inert, cold figure and become social and economic happiness for the people of Venezuela in concrete solutions. Housing is one of them, and what we are doing is for the development of the country, but above all to attend to the people of Venezuela, to Venezuelan men and women, so that there is more employment, better wages, to have public services, water, electricity, hospitals, schools, adequate food. As a whole, this agreement is going to give a great boost to Venezuela, and that is why we said that it is a historic agreement. The agreement marks a major expansion of the U.S. role in Venezuela's oil industry. President Donald Trump says the U.S. has secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with private businesses. Washington wants to revive Venezuela's oil industry and secure more crude for U.S. refineries. Venezuela has the world's largest proven oil reserves, but current production is only about 1.25 million barrels a day, which is far below its potential after years of sanctions, mismanagement and underinvestment. Under the agreement, Rodriguez says that Venezuela will retain ownership of its oil resources, while foreign companies provide capital, technology and expertise. She says the 25-year deal covers 65 billion barrels of reserves, while 17 oil fields targeted for development and initial production of 1.5 million barrels a day. Rodriguez also says that Caracas could receive $19 for every barrel sold to the United States, potentially generating more than $200 billion a year, depending on oil prices. Rodriguez says healthy revenue could also mean more jobs, better wages and improvement of water, electricity, hospitals and schools. But Venezuelans say they have heard promises before. Listen to this. As a Venezuelan, I hope that the country will take responsibility for this blessing that comes in dollars, so that it can make a difference and that companies will be able to help people who are in dire straits. If that money goes to the people, I think that's excellent. But if, on the other hand, the money goes into the state coffers and stays with the state, then I don't like it, because the idea is for that money to be invested here in Venezuela, in schools, hospitals, roads, street lighting, rebuilding the many things destroyed by the earthquake and providing assistance to people who lost everything. Well, for now, the deal remains a promise of future revenue. The government says that all has a way to finance reconstruction and restart the economy. Ordinary Venezuelans, however, are waiting to see whether that old wealth translates into something that they can feel in their homes, their paychecks and their everyday lives.