Trump Ally Defends Venezuela Oil Deal Amid Criticism.
The White House disclosed Monday that the U.S. is partnering with North American Blue Energy Partners on a joint venture giving the Pentagon a 35% stake in Venezuelan oil fields. The deal, signed by Defense Secretary Pete Hegseth and Secretary of State Marco Rubio, covers 17 fields with 65 billion barrels of proven reserves.
- 35% ownership stake goes to the Pentagon's Office of Strategic Capital.
- 20% of output goes to the State Department, purchased at cost.
- $100 billion in infrastructure investment is pledged by NABEP, source unspecified.
- 100-year field rights granted by Venezuela's acting President Delcy Rodriguez.
Why it matters: The deal would make the new company the second-largest corporate holder of proven oil reserves after Saudi Aramco, according to a U.S. official who spoke anonymously. Many of the 17 fields were previously held by Russian or Chinese firms.
- Venezuela's oil infrastructure is badly degraded; production once exceeded 2.5 million barrels a day above current levels.
- Gas averaged $4.08 per gallon Monday, up from $3.19 a year ago; the Iran conflict is currently driving prices more than this deal.
How 54 sources split on this story
Where they split: The central dispute is whether the deal delivers near-term energy and economic benefits or is a legally fragile, long-horizon gamble whose costs and investor confidence remain unresolved.
Center coverage, 20 sources: The center focuses on unanswered practical questions — funding gaps, legal risk, years-long timelines — and whether the deal can deliver on Trump's promise of lower gas prices before U.S. elections.
Left coverage, 17 sources: The left frames the deal as a sweeping U.S. seizure of Venezuelan state assets brokered through a Washington-backed transitional government, with Venezuelan citizens expressing anger over foreign control of their resources.
Right coverage, 17 sources: The right frames the deal as a decisive geopolitical move that weakens China's oil supply, erodes OPEC, and reasserts American energy dominance after years of climate-driven policy constraints.
What’s next: No deal text has been publicly released; the White House has not explained the $100 billion funding source.
- Former energy adviser Bob McNally warned future U.S. or Venezuelan administrations could withdraw.
- Venezuela's constitution requires state control over core oil activities, raising unresolved legal questions.
- Where does the $100 billion in investment actually come from, if not U.S. taxpayers and not NABEP alone?
- How will Venezuela's constitutional requirement for state control over oil be reconciled with the deal's structure?
- Will private oil companies — ExxonMobil, ConocoPhillips, Chevron — commit capital under the new arrangement?
