US Takes 55% Venezuelan Oil Venture Stake as SPR Refill Plan Faces 3-Year Hurdles
Updated
Updated · CNN · Sep 1
US Takes 55% Venezuelan Oil Venture Stake as SPR Refill Plan Faces 3-Year Hurdles
3 articles · Updated · CNN · Sep 1
Summary
A new US-backed venture gives Washington a 55% stake in 17 Venezuelan oil fields and rights tied to output, which Trump says could help refill the Strategic Petroleum Reserve.
65 billion barrels of reserves are cited, but analysts say that does not translate into near-term supply because Venezuela exports only about 1.2 million barrels a day and needs years of repairs and investment.
Heavy Venezuelan crude also does not meet SPR storage standards; a 2016 Energy Department review found hardening the caverns for such oil would cost more than the benefits.
Congress must approve direct SPR purchases, though analysts say the administration could swap Venezuelan crude for lighter barrels from Gulf refiners or sell it and buy US light crude instead.
Trump himself said the project may take 2 to 3 years, leaving the SPR—drawn down by 130 million barrels during the Iran war—still needing a faster replenishment plan.