Washington,Ā Sept 5:
The United States is seeking to establish what Vice-President J.D. Vance described as an effective 65-billion-barrel oil reserve through a new arrangement with Venezuela, with American companies expected to develop production while the US receives a share of royalties.
Vance said the agreement would help increase global oil supplies, bring down prices and strengthen US energy security at a time when Iranian attacks on commercial shipping have disrupted international energy markets.
āWeāre using, of course, that successful Venezuela operation and some of the friendships and some of the relationships that have developed in the wake of that operation, to create what is effectively a new 65 billion barrel of oil reserve for the United States of America,ā Vance said at a White House briefing.
Under the arrangement, private US companies are expected to enter Venezuela and expand oil production, generating substantial revenues. Vance said the Venezuelan people would receive significant revenue while American consumers would benefit from increased supplies and potentially lower energy costs.
He also said US taxpayers would directly receive part of the royalties generated under the agreement. The deal was negotiated by Secretary of State Marco Rubio, Defence Secretary Pete Hegseth and other senior administration officials, according to Vance.
The Vice-President presented the arrangement as beneficial to Venezuela, American consumers and US taxpayers, while arguing that recent disruptions had underscored the need for reliable supplies of oil, gas, critical minerals and other strategic resources.
Vance also contrasted the proposed Venezuelan arrangement with the Biden administration’s use of the US Strategic Petroleum Reserve, portraying the new approach as one aimed at expanding actual production and securing long-term energy supplies