65 BILLION BARRELS OF VENEZUELAN CRUDE GO INTO A US-CONTROLLED VENTURE

🔴 65 billion barrels of Venezuelan oil reserves are heading into a joint venture the US federal government will control 55% of.

Fortune reports the stake comes through equity ownership and oil production, with a private Venezuelan operator holding the remainder. A US official said the new company would be the world's second-largest corporate holder of proven reserves, behind only Saudi Aramco.

The scale is the story. Venezuela sits on an estimated 303 billion barrels, the largest reserve base on earth. The 65 billion barrels in this deal alone exceed the entire US proven reserve total of 46 billion.

Venezuela's interim president, Delcy Rodriguez, granted a private company a 100-year lease on prime fields, according to reports cited by Fortune. She said the arrangement will bring in more than $100 billion of investment and generate $209 billion for Venezuela's government.

The US has never had a state oil champion. Saudi Arabia has Aramco, Russia has Rosneft, Brazil has Petrobras, Mexico has Pemex. American crude has always been pumped by Exxon, Chevron and Permian wildcatters.

The hard part is production. Venezuela pumps 1.1 million barrels a day, down from a peak of 3.5 million more than 20 years ago. Fortune notes rebuilding to those levels needs billions in investment and years of work, plus majors willing to return after past nationalizations.

Meanwhile the Strategic Petroleum Reserve sits at 289.7 million barrels, its lowest since November 1982. The US official said new output would help restock it.

Would you put your money into Venezuelan oil fields right now?

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