The Venezuela Oil Deal Is Just the Start

Peter Zeihan 6 min

The oil deals represent only the beginning of a potential renaissance, not an immediate turnaround. The current situation is a step in the right direction, but we must not get too crazy or ahead of ourselves.

  • Alejandro Betancourt
  • Delcy Rodriguez

Chapters

  1. 0:00

    Chevron's Limited Investment

    An American company is investing to increase output by 300,000 barrels over five years.

  2. 0:17

    Hunt Oil's Small Contribution

    A second American firm is taking over two small fields to potentially extract 100,000 barrels.

  3. 1:37

    The NABEP Deal with Betancourt

    A new company led by a former Russian-affiliated executive is receiving concessions from China and Russia.

  4. 3:33

    NABEP's Lack of Resources

    The new company lacks the necessary staffing and equipment to operate the fields effectively. The United States holds theoretical rights to assign board members and take a discounted share of production. The deal aims to give a stamp of approval so others can invest and fund the operations. Without money or skill transfer, the current situation is not the beginning of an oil renaissance.

  5. 4:49

    A Necessary First Step

    Having a non-state entity operate fields is a step in the right direction despite limitations.

Key points

  • 0:17

    Chevron aims to increase output by 300,000 barrels over the next five years.

  • 0:17

    Venezuelan crude in the Orinoco Belt is a physical solid at room temperature.

  • 0:17

    Hunt Oil may extract 100,000 barrels over ten years from two small fields.

  • 0:17

    Venezuela's production fell to under a million barrels a day under Chavez and Maduro.

  • 1:37

    Betancourt was kicked out after embezzling money from the state oil company.

  • 1:37

    NABEP currently produces about 200,000 barrels a day under Rodriguez's leadership.

  • 1:37

    The new deal takes all Russian and Chinese concessions to give them to NABEP.

  • 3:33

    Operating all fields would require about 90 rigs, but NABEP only has two.

  • 3:33

    The US gets rights of first refusal on the first 20% at a huge discount.

  • 3:33

    The deal is a necessary first step but offers no money or equipment yet.

On the map

Map of the places in “The Venezuela Oil Deal Is Just the Start”

Who and where

Places · 6

  • Venezuela 12
  • United States 4
  • Russia 4
  • Maracaibo 1
  • Orinoco Belt 1
  • People's Republic of China 1

People · 2

  • Drawing of Alejandro Betancourt

    Alejandro Betancourt 1

    Photo 1

  • Drawing of Delcy Rodriguez

    Delcy Rodriguez 1

    Acting President of Venezuela since 2026

    Photo 2

1. Photo: Alejandro Betancourt web, CC BY-SA 3.0, via Wikimedia Commons · Wikidata · redrawn in our house style (Alejandro Betancourt)

2. Photo: Presidency of Venezuela, Public domain, via Wikimedia Commons · Wikidata · redrawn in our house style (Delcy Rodriguez)

Organisations · 3

  • North American Blue Energy Partners 6
  • Chevron Corporation 5
  • Hunt Oil Company 1

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