The Oil Deal That Will Never Be

President Trump’s announcement that the US will take control of Venezuela’s oil reserves has been met with skepticism and concern from experts and politicians alike. On the surface, this deal seems like a masterstroke for Trump, who is facing mounting pressure to address high gas prices amidst the ongoing conflict in Iran.

The Trump administration’s argument that Venezuela stole US oil when Hugo Chavez nationalized hundreds of foreign-owned assets decades ago is a convenient rewriting of history. In reality, the US had been using its economic and military might to exert control over Venezuela’s resources for years before Chavez took office. The 1958 US-backed coup that ousted democratically-elected President Marcos Perez Jimenez was just one example of this interference.

Venezuela’s oil reserves are indeed massive, with an estimated 303 billion barrels waiting to be tapped. However, the country’s infrastructure has been dilapidated for years, making it nearly impossible to extract this oil efficiently. The US would need to invest heavily in modernizing Venezuela’s refineries and pipelines before any significant production could begin.

The Trump administration’s push for control over Venezuelan oil reserves comes at a time when the US is struggling to contain the conflict in Iran, which has now entered its seventh month with no end in sight. The US has already tapped into its strategic petroleum reserves, and gas prices are reaching record highs. By seeking to gain control over Venezuela’s oil, Trump may be trying to compensate for his inability to resolve the situation in Iran.

If the US is able to tap into Venezuela’s reserves, it could potentially reduce the country’s reliance on Saudi Arabia and other Middle Eastern producers. However, this would also create new challenges for the global oil market, including concerns about supply security and the potential for price volatility. The implications of this deal for energy markets are far-reaching.

Venezuela’s interim president Delcy Rodriguez has yet to comment on the agreement, and Maduro remains in power despite being ousted months ago. The US would need to navigate a complex web of Venezuelan politics and international law to make this deal happen, not to mention convince skeptical oil companies that investing in Venezuela is worth the risk.

In reality, this “biggest oil deal in world history” is nothing more than a distraction from Trump’s own failures on energy policy. As the conflict in Iran drags on, and gas prices continue to soar, it’s clear that the US needs a more nuanced and effective approach to managing its energy needs. This deal may be a nice soundbite for Twitter, but it’s a solution that will never be.