White House says deal to take control of Venezuelan oil will rely on North American Blue Energy Partners

White House Says Deal to Take Venezuelan Oil

Wertynews.com – The White House says deal to take control of Venezuelan oil will rely on a single private firm called North American Blue Energy Partners (NABEP), led by Venezuelan executive Alejandro Betancourt. Announced Monday, the arrangement grants NABEP 100-year drilling concessions across 17 oil fields holding roughly 65 billion barrels of crude — approximately one-fifth of Venezuela’s total proven reserves. Embedded directly into the venture’s ownership structure are the U.S. Department of Defense and the State Department, giving Washington both a financial stake and preferential access to every barrel produced.

The disclosure follows a dramatic upheaval in Caracas. After U.S. forces removed former President Nicolás Maduro from power in January, President Trump moved swiftly to restructure an energy sector that had sat largely idle despite the country’s claim to the largest proven oil reserves on Earth. Decades of underinvestment left pipelines, refineries, and extraction infrastructure crumbling, and daily output collapsed to a fraction of its historical peak. The administration frames the new arrangement as a way to reverse that decline without spending a dollar of federal money.

Ownership and Financial Mechanics

Under the terms detailed in a White House fact sheet released late Monday, the Pentagon holds a 35 percent equity stake in NABEP. The State Department secures the right to purchase 20 percent of total output at cost-of-production pricing, plus a right of first refusal on all remaining barrels. In practical effect, Washington carries both a financial interest in the venture and a preferential claim on the crude it produces.

The White House says the deal to take Venezuelan oil will be executed at “no cost to the American taxpayer.” NABEP, according to the administration, has “developed an ambitious plan to rapidly scale production by investing up to $100 billion in new oil infrastructure in Venezuela.” Officials argue the arrangement will flood the domestic market with additional supply, exert downward pressure on pump prices, and generate revenue to replenish the Strategic Petroleum Reserve.

Production Targets and Scale

NABEP currently describes itself as Venezuela’s second-largest private oil producer, extracting more than 200,000 barrels per day. The company states it intends to push daily output above 1 million barrels in the near term. Interim Venezuelan President Delcy Rodriguez, speaking over the weekend, set a more aggressive long-range target: more than 1.5 million barrels per day, framed as a 25-year partnership.

For context, the United States consumed roughly 20.6 million barrels of petroleum per day last year. Even Rodriguez’s aspirational figure would represent a meaningful but not transformative share of domestic demand. Closing the gap between current output and those targets would require rebuilding pipelines, refineries, and extraction infrastructure that have deteriorated over decades.

Statements from Both Sides

Betancourt, thanking both President Trump and Rodriguez in a written statement, framed the transaction as a mutual opportunity:

“Venezuela is blessed with an abundance of natural resources, hardworking people and untapped potential. This transaction will unleash that potential to the great benefit of both Venezuelans and Americans.”

Rodriguez called the arrangement a “historic agreement” expected to attract scores of private investors into Venezuela’s oil sector and generate hundreds of billions of dollars in tax revenue. She stressed that Caracas would retain sovereign control over its natural resources.

The White House, in its own framing, cast the deal in strategic terms:

“This deal secures our energy dominance for the next century — all at zero cost to the United States.”

Skepticism and Political Pushback

Energy analysts note that Venezuelan crude tends to be “heavy” — dense and viscous — and “sour,” carrying high sulfur content. That combination makes it more expensive and complex to refine than the light, sweet crude that dominates U.S. domestic production. New infrastructure would need to be built or rehabilitated before any meaningful volume could flow into American refineries, and experts estimate the lag between signing and market impact could stretch into years, or well beyond a decade.

Political resistance has emerged on both sides of the Atlantic. Opponents of Rodriguez within Venezuela have labeled the concessions an “asset grab,” questioning the legal authority under which a foreign government can grant century-long rights over sovereign resources. In Washington, critics of the administration have raised concerns about concentration of energy leverage in a single private entity and the long-term fiscal commitments embedded in the State Department’s output-purchase clause.

Frequently Asked Questions

What is North American Blue Energy Partners? NABEP is a private energy company led by Alejandro Betancourt. It currently operates as Venezuela’s second-largest private oil producer, extracting over 200,000 barrels per day, and has been granted 100-year drilling concessions across 17 fields under the new arrangement.

How much will the deal cost U.S. taxpayers? The White House says the deal to take Venezuelan oil will cost American taxpayers nothing. All capital investment — up to $100 billion — is to come from NABEP and its private partners.

When could additional Venezuelan crude reach U.S. refineries? Analysts caution that rebuilding the necessary pipelines, refineries, and extraction infrastructure could take years or longer. Venezuelan crude’s heavy, sour nature adds further complexity to refining logistics.

What role do the Pentagon and State Department play? The Pentagon holds a 35 percent equity stake in NABEP. The State Department holds the right to buy 20 percent of output at cost-of-production pricing plus a right of first refusal on all remaining barrels.