The deal is illegal, with no immediate impact. But Canada is warned. 
Trump Claims the Greatest Deal in History
Truth Social: BREAKING NEWS: The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY! At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer. This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity. This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States! Thank you for your attention to this groundbreaking matter. MAKE AMERICA GREAT AGAIN! President DONALD J. TRUMP
Aug 28, 2026, 4:47 PM
U.S. to Take Control of Much of Venezuela’s Proven Oil Reserves
The Wall Street Journal reports U.S. to Take Control of Much of Venezuela’s Proven Oil Reserves
Since ousting Maduro in January, Trump has pushed U.S. oil companies to plow money into the country in a bid to shore up oil production. But many have been hesitant to do so.
Friday’s deal would give the U.S. a foothold in some of the most promising oil-and-gas fields. The country says it has some 300 billion barrels of proven reserves, the largest in the world. In comparison, the U.S. has about 46 billion.
Trump also said the agreement would substantially lower gas prices for all Americans. He and his team have been trying to shore up energy security in the Western Hemisphere while the Iran war has locked a big portion of the world’s oil and gas behind the Strait of Hormuz.
The Details
Rodríguez, Venezuela’s interim president, has granted a private company—a joint project of the U.S. government and a private operator in Venezuela—a 100-year lease for the oil fields, a U.S. official said. The entity would be the world’s second-largest corporate holder of proven reserves after Saudi Aramco.
The U.S. government would hold a 55% share, split between equity ownership and oil production. As the company scales production, the oil would help fill the U.S. Strategic Petroleum Reserve, the official added.
The Context
Direct U.S. involvement in foreign oil production is rare. During World War II, the administration of Franklin D. Roosevelt created a state company to get foreign reserves and sought to buy a U.S. company that had concessions in Saudi Arabia. But the effort ultimately failed.
Friday’s deal could help reassure American companies that are on the fence about gambling capital there. Chevron is nearing a deal to make a big investment in Venezuela’s oil fields, The Wall Street Journal reported earlier Friday. But many others, including ExxonMobil and ConocoPhillips, have been skittish.
Some companies have said they would need security guarantees and an overhaul of the country’s legal and commercial framework to consider diving in. Venezuela’s oil production has been slow to ramp up since Maduro’s ouster. It is pumping about 1.1 million barrels a day, roughly in line with last year’s figures.
The Reaction
News of the talks caused an outcry among some in Venezuela’s opposition who have been pushing for the U.S. to pressure Rodríguez to hold elections. The Trump administration has played a major role in overseeing Venezuela’s oil industry since ousting Maduro and replacing him with Rodríguez.
“An illegitimate interim government with an illegitimate hydrocarbons law has no legitimacy to strike this unconstitutional deal,” Ricardo Hausmann, a Harvard University economist and former government official in Venezuela, wrote on X. “It will be a fiasco for all involved, starting with [Secretary of State Rubio].”
Venezuela’s constitution says the country’s oil deposits belong to the Venezuelan state and cannot be transferred to another owner—a potential legal obstacle to any deal that would give the U.S. government control of reserves.
Practical Realities
The ad hominem attacks on Hausmann were rampant, centering around his association with Harvard and Axios.
Here’s a better rebuttal from Brett Erickson, Managing Principal, Obsidian Risk Advisors.
Near-Term Risk
Obvious Risk
- “The prospect of one of the world’s wealthiest countries taking the natural resources of an impoverished country like Venezuela will cause immediate political consequences for the Rodriguez government.
- “The obvious risk is the people who are already very much struggling will riot and rise up and see this as being a clear raping of their resources, which it is.
- “It doesn’t take a rocket scientist to see that this is a very corrupt deal and completely against the will of the Venezuelan people. These are their natural resources.”
Not Hard to Understand
Who Will Make the Investments?
The Washington Post comments Trump says he has secured a vast U.S. stake in Venezuelan oil industry
President Donald Trump announced Friday night that the United States had secured a long-term stake in a vast share of Venezuela’s oil fields, a potentially costly and legally precarious proposal that aims to nudge reluctant energy companies to drill in the risky region.
Under it, according to federal officials, the U.S. has gained a controlling stake in nearly a quarter of Venezuela’s untapped oil reserves. It makes the U.S. the majority owner of a giant new joint venture oil company that will hold 100-year contracts at the Venezuelan oil fields.
In his post this evening, Trump said the Venezuela deal “will substantially lower Gas Prices for all Americans,” although most experts say that any real increase in Venezuelan oil production is years away.
Trump also claimed the deal would come at no cost to U.S. taxpayers. But deal points reviewed by The Washington Post and interviews with people who were close to negotiations as the deal came together suggest that for the plan to succeed in producing oil in the amounts the administration projects, the U.S. government may ultimately need to invest significant amounts.
A list shared with The Post before the deal was announced noted 17 oil fields in which the U.S. would take a stake. Several of the fields lack any infrastructure or access to transport hubs to treat and move the crude. Those where such infrastructure does exist have fallen victim to years of neglect and theft of machinery.
Pumping oil from the fields could require investments of many billions of dollars and costly security plans to protect oil workers and production facilities in lawless and violent regions. The deal points reviewed by The Post say the U.S. government stake in the newly formed oil company will be split between equity ownership and guarantees that it will purchase oil produced by it at cost to refill the U.S. Strategic Petroleum Reserve.
But it is unclear who would make the tens of billions of dollars in infrastructure investments needed before oil can be pumped from the largely dormant fields. Major oil companies have mostly seen such spending as too risky.
Pentagon officials said they could not comment on any particular deals being weighed at the OSC, but they stressed that the office cannot take any ownership stake in private companies.
“OSC’s role is strictly limited to providing capital assistance in the form of a loan, loan guarantee, or technical assistance (including transaction structuring for developing and financing investments),” said a statement from Pentagon spokesman Sean Parnell.
Trump made Rodríguez “interim” president while pledging that her country eventually will return to democratic, elected governance. “From a legal standpoint in Venezuela, Delcy has no standing,” said a Venezuelan with long participation in the oil industry, who also spoke on the condition of anonymity to provide a candid assessment.
The person said this will leave banks and other institutions typically involved in financing drilling operations asking, “Why are we signing deals with people who have zero legitimacy?”
Under the structure of the deal, according to people familiar with it, oil could be produced using an existing joint venture legal structure in Venezuela through which the U.S. would be granted access to develop the oil fields, but Venezuela would still be guaranteed a cut of all revenue they produce.
The deal could face stiff resistance in Venezuela as well as in the U.S.
Any U.S. government expenditures or loans needed to develop oil fields would probably need congressional approval just as Trump’s GOP allies risk losing control over the legislative branch in the upcoming midterm elections.
Despite claims by the Trump administration that Maduro’s removal would unleash a frenzy of drilling in Venezuela, oil production there has increased little, up only about 200,000 barrels over the past year, with projections for the same increase or less next year.
It remains unclear “whether anybody would want to operate” in a country where electricity is limited and port infrastructure is not capable of handling increased production, among other limits that “are holding back the majors from going into the country right now,” said David Goldwyn, head of the international energy consulting firm Goldwyn Global Strategies.
Even if the deal enables the U.S. to supersede all Venezuelan government jurisdiction over the oil fields, those areas “would have the same risks” that have limited new investment so far to smaller, less risk-averse companies, Goldwyn said.
An Open Mind
Trump’s deal with Venezuela is illegitimate, but that does not imply it won’t be honored or revised to make it legitimate.
The US had a puppet government in Iran for a long time in the 1950s.
The 1953 Coup in Iran
- The 1953 Coup: The CIA and British intelligence (MI6) orchestrated Operation Ajax to oust Iran’s elected Prime Minister, Mohammad Mosaddegh, after he nationalized the country’s oil industry.
- The Shah’s Rule: Mohammad Reza Pahlavi returned to absolute power as monarch and a key Cold War ally to the United States.
- Duration: The Shah ruled with strong American backing for 26 years (from August 1953 until he was overthrown in February 1979).
A similar scenario may not be likely, but it is possible.
US companies undoubtedly know the risks. Chevron seems more willing to take a chance with Exxon-Mobil less willing.
Canada Is Warned
The Venezuela deal acts as a massive wake-up call highlighting Canada’s extreme export concentration. Historically, roughly 97% of Canadian crude oil exports have gone directly to the United States.
This alleged deal is a huge warning to Canada that Trump would rather steal Venezuelan oil than have a legitimate deal with Canada.
And this is something I warned about long ago.
Canada needs to improve alternate export routes and the most obvious are pipelines to the Canadian West coast to supply China and Japan.
Canada’s existing pipeline to its West coast, but it is at full capacity.
Trans Mountain Pipeline Expansion (TMX)
Following the 2024 completion of the Trans Mountain Pipeline Expansion (TMX), which tripled Western Canada’s export capacity to the Pacific coast to 890,000 barrels per day, Asian markets immediately integrated Canadian crude into their supply chains.
This shift has accelerated due to escalating U.S.-Canada trade disputes and a desire to diversify away from traditional geopolitical choke points.
China’s Consumption
- Top Customer: China has emerged as the largest buyer of Canadian crude oil shipped through the TMX.
- Refinery Integration: Major Chinese refiners, such as Rongsheng, actively process heavy Canadian oil sands crude at large-scale coastal facilities.
- Volume Spikes: Tanker data shows China taking nearly two-thirds of the oil moving off Canada’s west coast, a massive increase from negligible volumes before 2024.
Japan’s Consumption and Investment
- Energy Security: Japan imports roughly 95% of its crude oil from the Middle East. Disruptions in the Strait of Hormuz have forced Tokyo to aggressively seek safer, alternative sources like Canada.
- Technical Adapting: While Japanese refineries were traditionally designed for lighter Middle Eastern crude, Japanese firms are buying Canadian cargoes and adapting.
- Active Negotiations: The Japanese government and organizations like the Japan Organization for Metals and Energy Security (JOGMEC) are in talks with Alberta to invest in refinery upgrades (such as coker units) and secure long-term oil supply pacts.
While the current economic friction feels uniquely tied to Trump’s personal style, Canada cannot assume this policy shifts when his term ends in two years.
Vice President JD Vance, or a subsequent nationalist-populist Republican successor, would likely institutionalize this “America First” energy doctrine.
Upgrading West Coast pipeline capacity to achieve absolute energy independence from the U.S. market is no longer a long-term option for Ottawa. it is an immediate requirement for national sovereignty.
The irony and stupidity of this setup is the US should be working with Canada to combat China’s dominance in manufacturing and rare earth elements.
Instead, Trump has pushed Canada closer to China.
My Warning to Canada
On March 22, 2025, I asked Should the US Import Oil from Venezuela Instead of Canada?
The answer to this question is seemingly obvious, but ….
Who Will Win the Trade War Between the US and Canada?
On August 27, 2026 I answered the question Who Will Win the Trade War Between the US and Canada?
We know the answer already, China.
Total Failure of Trump’s Tariff Policy to Reduce Imports
For discussion of “Liberation Day” tariffs and what has happened since, please see Trade Deficit Surges, Imports Up 3.7 percent, Exports Down 2.9 percent
It’s failure all around for Trump.
Canadians will now shun US goods, especially autos.
Trump turned a win-win trade agreement with Canada, including a chance to isolate China, into a lose-lose affair pushing Canada closer to China.
What a disaster.
I have not read the art of the deal, but I have been told there is a whole chapter on negotiating with a party that has no control over subject being negotiated makes it easier to get the terms you want. I find this Trump announcement to be more bloviating than substantive.
It seems to be a self defeating proposition. On one hand Trump says this will lower the price of fuel for Americans yet in order for that to happen the price of Oil has to go down. The price of Oil goes down to give relief at the pump means the cost to extract the Venezuelan Oil now probably loses money, no Oil company on this planet will invest the Billions and Billions and the years required to not make any of that investment back, besides Trump is long gone before anything happens and the latest Venezuelan Dictator is now in power.
With Trump it’s all about the distraction, Look over here, “The Greatest Oil Deal in History”, Don’t look over there, I created the Greatest Oil Supply disruption in History with no end in sight.
The boast that Venezuela has more oil than Saudi Arabia comes from Hugo Chavez. He didn’t understand oil either.
Basically, the United States is engaged in open armed robbery.
Spin that how you like.
Yes, and millions of Americans are openly loving it! So much for the “Moral Majority”. LOL.
Repeated with some alteration:
Canada and US trade war – – – China wins
EU and US trade war – – – – – – -China wins
Iran and US war – – – – – – – – – – China wins
Russia and Ukraine war – – – – -China wins
Trump global trade war – – – – – China wins
Economic sanction agains Russia – China wins
Gaza war – – – – – – – – – – – – – – -China wins
Afghanistan war – – – – – – – – – – China wins
Venezuela oil deal – – – – – – – – – – – -China wins
?
?
?
Well done!
You have serially chosen the useless – – –
Trump wants to bring back to batte ships.
Trump is trying to revive tariffs from the McKinley era, do away with income tax.
Trump is trying to to reinvigorate colonial era gunboat policy.
Trump is trying to reenact colonial land grab expansionism.
Trump is a throw-back, trying to latch onto things deselected by historical development.
nah. trump is just distracting epstein files, and like his entire life just wants to be center of intention so does and says stupid and outrageous things like he’s in some Rapper competition.
Trump really is P.T. Barnum, “The Greatest sho…..Deal on Earth!”. He pushed this back in January after Maduro was removed, he invited all of the Big Oil heads to the White House and expected to cut all of these deals, their response was Luke warm at best and than he got mad at them.
A good write up from the last time Trump proclaimed Venezuelan oil now belonged to America.
https://lonehansen.substack.com/p/venezuelas-extra-heavy-oil-numbers
I thought I had heard last week Canada had approved a new West Coast pipeline.
AI says not so fast.
Canada has not fully approved a new West Coast oil pipeline yet, but the federal and provincial governments are actively advancing a proposal to fast-track its review. [1, 2]
Project Overview
Current Status
Unlike Trhey have respect for Indingenous peopls and immenient domain so give them a little time; but it’ll happan ASAP.
Mostly correct, Mish.
In order for Canada to build pipelines east and west from the prairies, certain foreign countries have to stop financing professional agitators and protesters aggravating native and political opponents to prevent any project advancing. Public reports of tens of thousands of foreign dollars per week being used to hire thugs to block pipelines are hard to dismiss. It isn’t enough to tell Canada to build more pipes. Foreign interference blocking them in order to force (mostly) Alberta to sell their oil at a 15% discount to the US. Alberta loses $60m per day because of this. That’s 22 billion dollars per year below market value.
Nice little oil field you got there, Alberta. It would be a shame if anything happened to your pipelines… Howz about you sell it to us and da boys for 15% discount?? Vinny and da boys will see to it that no pesky foreign customers make any deals that include a foreign funded pipeline to the Pacific Coast.
So what exactly is in the offer the US made to Venezuela? Can they refuse?
Excellent post. Canada should kill any plans to revive the Keystone XL pipeline (though all the infrastructure exists on the Canadian side) and begin expanding TMX capacity immediately. There were rumours that Canada was going to offer Trump a juicy prize in the form of a revived Keystone XL, as part of a grand new trade deal that could have resulted from the now-failed recent negotiations. That now seems like a very foolish idea & I hope that Carney realizes this.
I suspect that Canada will build them both. Why not sell everything they can?
Canadians may be pissed off at Trump, and are limiting their travel to the US and their purchases of US products; but they still want to sell whatever they can to the US. It’s in their best interest to do so.
Trade is supposed to be win-win. Too bad Trump doesn’t understand that.
You and I would build and sell from both.
But Canada is loaded with green crazies who oppose any new pipelines and development. That’s why it took the government to get even 1 built when normally private companies have no problems funding them on their own.
“Loaded” with green crazies? Hardly.
🇨🇦 What the latest Canadian polls show
Below is a structured, Canada‑specific summary of the most recent public‑opinion polling on new pipeline construction, all from 2026.
—
📊 1. Alberta → B.C. oil pipeline proposal
• 63% of Canadians support building a new Alberta‑to‑B.C. pipeline.
• Only 21% oppose, and half of supporters say their view could still shift.
• Economic arguments are the strongest drivers of support:• 55% say diversifying away from U.S. buyers is compelling.
• 51% cite oil’s importance to Canada’s economy.
• 45% cite job creation.
Angus Reid I…
—
📊 2. Westcoast Natural Gas Pipeline (Enbridge expansion)
• 55% national support for expanding the Westcoast natural‑gas pipeline.
• Support is even higher in B.C. (61%), where opposition has fallen to just 17%.
• 48% of Canadians say Ottawa is “doing too little” to build new pipeline capacity.
• Only 21% say Canada is building too many pipelines — down from 27% in 2019.
Angus Reid I…
—
📊 3. Broader attitudes toward pipeline infrastructure
While not a “new pipeline” poll directly, this survey shows the national mood:
• 56% say it is appropriate for governments to invest in or own pipelines.
• Support for public ownership is strongest in Ontario (63%)
• 42% say Ottawa was right to buy the Trans Mountain pipeline, up sharply from 2025.
Angus Reid I…
—
🧭 What this means for Canada in 2026
Across multiple polls, Canadians show consistent majority support for new pipeline construction — especially when framed around economic security, diversification away from U.S. markets, and national energy resilience. Opposition has shrunk significantly compared to the 2010s.
The strongest support appears in:
• Western Canada (Alberta, Saskatchewan, B.C.)
• Ontario, when pipelines are tied to economic benefits or national strategy
• National-level polling, where 55–63% support is now typical
High time to stop using economic arguments to devastate and kill the planet.
It isn’t about economic arguments. We have the knowledge and ability to make the planet a paradise for all humanity. The trillions wasted on militaries and wars, and the inability of humans to get along with each other is the real culprit. That is the entire history of humanity and I do not expect it to change.
Power selects strongly for sociopathy.
“make the planet a paradise for all humanity.”
Never happen under the current US system of capitalism. Capitalism REQUIRES the poor to support the rich and powerful.
That’s all very well – have you not heard of NIMBY? It’s alive and well and the politicians want local votes, not national. I have been disgusted for a long time about all this money sitting in the ground while the fights continue. Hopefully, Trump will change this – I do see some hint of it happening. Your president is doing good work in Canada.
Yes. NIMBY is common in most developed countries, including the US.
Look at the recent opposition to the build out of data centers in the US.
I fail to see how our President is doing good work anywhere. Everything he touches turns to shit.
Look at Trump’s own opposition to developing wind and solar that we desperately need. He even paid some wind developers to stop their construction. We needed that power in order to build our data centers. How are we going to compete with China in the AI race if we don’t generate more power?
Here are IEA numbers from 2025 for new power generation added and by source. Lets compare China and the US.
Solar
China 370 GW, US 43 GW
Wind
China 117 GW, US 8 GW
Natural Gas and Coal
China 60 GW coal, US 5 GW gas
Nuclear
China 5GW, US 0
How can we add 50 GW of data centers each year going forward without solar and wind? 5 GW per year of new natural gas power won’t cut it.
Let’s do some math and legal thought and realize this is pure genius and a win for all involved.
For investments to flow, the US must lease the reserve and not a private company. With the United States leasing the oil gives an implicant warranty that the field is the property of the US just like Guantanamo Bay. Just like Gitmo, the US will protect its interests unlike a private company which cannot.
The lease covers only 20% of the proven oil reserves of Venezuela. (65/300) We are not talking about unproven reserves which I am sure are more to find and develop.
Production in Ven. is somewhere around a million barrels a day.
Recent peak production in 1997 was 3.5 million barrels a day. At 3.5 million barrels a day, it would take 283 years to run out of proven oil reserves; not including other reserves. Ven. getting back on its feet is the prime objective, not protecting a resource for a generation older than the US is a country.
At current prices, if the US took 55% of the revenue of the increase of production from 1 million to 3.5 million barrels – the income of Venezuela would double.
With the assurance of the US the other 80% of the oil fields would start to get serious cash investments.
Socialism wrecks everything productive it touches including the environment. Having a predictable legal system is the prerequisite for having a growing economy. Not long-ago people that were sitting on the largest proven oil reserves in the world were told to grow rabbits for meat and eat once or twice a day.
The US provides stability, Ven doubles its income and everybody wins except the Canadians.
Someone drank the “stable genius” kool aid.
No way “the US provides stability” for anyone…
with an unchecked and unbalanced King Chaos…
being a sTump where 3 coequal branches should be.
Here is more math.
The estimated cost to produce a barrel of Orinoco oil is $80 to $100. And that is being optimistic. There is no profit incentive.
The cost to produce a barrel of oil in a greenfield oil sands facility in Alberta is $55-$75. Expanding existing fields is $45 per barrrel. And it’s better oil than Orinoco.
New offshore fields in Guyana and Brazil cost $45/ barrel.
New fields offshore West Africa cost $40/barrel.
Malaysia $37.
US Permian $70
The math alone tells us why US companies are hesitant to invest their capital in Venezuela. Many more reasons are listed in one of my other posts on this topic.
This does not pass the smell test. You are telling me that Ven. was paying $80 to $100 a barrel to pump crude in 2025 with a price between $58 and $72 a barrel for WTI; losing $42 to $8 a barrel in 2025. And their oil is mostly sour. No wonder hasenpfeffer (rabbit stew) was on the menu. Maybe they were able to sell oil because they stole all of the capital from someone else.
It depends on what you are talking about. Producing from existing operations or brand new greenfield projects.
Venezuelan oil costs $55-$60 to produce from already established fields.
Similar to Canadian oil that costs $45 from existing fields.
However, try to establish a brand new operation in the Orinoco belt and you are looking at $80 to $100. In the Alberta oil sands a greenfield project would cost from $55 to $75 per barrel.
Trump is talking about new greenfield projects.
It is simply theft, you moron.
Are you telling me that Venezula is the pure driven snow and never stole anything from American companies? I guess it is okay when a communist does it in the name of the people to steal.
“Stability”? Not anymore.
Trump will change the deal with the stroke of a sharpie. I don’t call that stability. If you get into bed with Trump you better have a full body condom.
In regards to your reference to Guantanamo. The Cuban government has refused the payment for the lease signed in 1934 since 1959. We are in essence squatters in a country that doesn’t want us there.
Everything your chief touches turns bad. A cloud of kaos 365 days a year. Everyone involved in pain. Please let it stop.
USA behaving like 18th century Britain.
Maybe worse we kill school girls by the hundreds at a time.
Perfidious Albion
So much morally and constitutionally wrong and so annoying that others are repeating Trump’s choice of calling international agreements, “deals”. He is such a moron.
He is such a THUG.
This is unlikely to end well for the US. It smacks of colonialism, if not outright stealing of another country’s natural resources. It looks ever more like Trump’s main two agenda items are the shitification of Washington DC and the destruction of America’s reputation in the world.
Correct. And it isn’t over yet. There’s still his intention to acquire Greenland and Canada.
Does Greenland have any oil?
apparently a US company sent unauthorised (by Greenland) rigs to drill off northern Greenland last week.
Potentially; yes. Zero reserves at the moment.
Trump “thinks” they have lots of rare earths and their global position is strategic militarily. Plus Greenland looks huge on a flat map (16x its actual size), and that appeals to Trump’s simpleton mind.
“smacks of colonialism, if not outright stealing of another country’s natural resources. It”
He blatantly said “take the oil” in Syria. How much more “smacking” does the jury need?
Trump thinks he can do whatever he wants and has no problem trampling on another country’s sovereignty.
That’s why the trade negotiations with Canada and Chile both failed this month.
Trump wanted a say in who Canada could sign trade deals with.
In Chile, the U.S. pressed Santiago to join the regional “Shield of the Americas” security alliance and reject the International Criminal Court.
Not only does Trump think he is King of the USA, he feels he is King of the World and everyone has to do what he says.
So what does anyone propose to do about it?
Not much. Americans don’t seem to have the balls to stand up to him. Not even in the Republican party. Because he has been a vindictive bastard his entire life, and now he has the power of the Presidency to go after those who oppose him.
Foreign countries attempt to negotiate with him, but only when he targets them, since they know full well he won’t keep any agreement he makes with them. So they go through the motions, and negotiate as little as possible, and stall as long as possible. Sometimes they even sign something of modest significance, but Trump tears it up soon after, when he gets upset about whatever. Then they hope he moves on to the next target and forgets about them. Most are waiting for him to leave office, or pass away while in office.
However, the bad will he has built up with most people and countries around the world will take decades to undo; if ever.
‘Inept, incompetent, craven’: Scott Bessent struggles to clean up the president’s messThere’s little optimism about treasury secretary’s ability to handle Trump’s tariffs, Iran sanctions and colossal US debt
https://www.theguardian.com/business/2026/aug/29/scott-bessant-us-economy-donald-trump
Wimpy economies can normally run on empty promises only so long…
but with Trump being Abby Normal…
consumed with parting all suckers from their money tomorrow..
with a nothing burger today…
each and every day…
who knows?
Multiple oil companies (mostly US) are currently working in Iraq to restart and then expand oil production. They are also building pipeline and other infrastructure to bypass the strait of Hormuz. That is way more significant to global oil supply than anything that will happen in Venezuela.
Absolutely. Because the goal is to cut out China and Russia influence in Iraq and thus exert more US control over Mid East oil.
Iraq is especially important as you know because it has one of the lowest costs of production of any oil in the world.
True. However the US has a piss poor record when it comes to oil production in other countries: Iran, Russia and Venezuela come to mind.
In addition, Iran targeted US oil interests in the region, such as the two LNG trains at Ras Lafan. US involvement increases the chances of Iran striking again.
my understanding of the Iraqi pipeline is it terminates in Seria that will ultimately make the straights of Gibraltar a shipping choke point for ships exiting the Mediterranean Sea.
Poor Delcy Rodriguez — Trump just referred to her as the
Trump should know that this could doom her politically in Venezuela, and prevent the deal from being realized. This might suggest it’s all political theatre rather than substance. I do expect Delcy to “clarify” how this “deal” will be made consistent with the Venezuelan Constitution (please show us the fine print!).
It’s axiomatic that no one should trust any “deal” with this President, so I would not put much stock in Trump’s bombast without first checking with the Venezuelans and Trump’s “private” partners (who I doubt are yet committing real money to this without guarantees).
I wouldn’t want to be in delcy’s position. I dont know what to make of her. Seems like a no-win situation.
Any elections will be rigged.
This whole thing could just be a ploy to help keep oil futures down until the midterms.
I never worked in Venezuela but it’s my recollection that most of Venezuela’s reserves are too thick to flow to a wellbore and too deep to mine. It’s unrecoverable. But what do you expect from an administration that doesn’t know a bit from a water barrel.
The “oil” in the Orinoco belt is more like tar. It’s thicker than Canadian oil sands bitumen and more costly to recover because it does not “flow”. It takes a lot of energy to get it out. Recovery rates range from 20% to 50% of what is there with current technology. And they need to build a few hundred billion of infrastructure first.
Who has the tech to refine it?
The tech is readily available. There are a few refineries in Venezuela , the US and Asia, with the full coking/desulfurization equipment necessary. The question is the cost to do it. If the oil costs $100 to produce, it is uncompetitive.
I read this years ago….and also very sulphurous. I read only two US refineries could handle Venezuelan crude.
Short answer: the exact same thing he got out of Venezuela earlier this year! N O T H I N G!!
I rest a little easier at night knowing we technically own all this oil we cannot process or use at any point within the decade. One day, decades from now, gas prices will go down and I’ll say “Thank you president Trump! Thank you for your long game plan!”
I am surprised and struck by his modesty. I was expecting announcement that his face would be on the new Venezuelan currency called Taco.
Clownword.
“Overseeing Venezuela’s oil industry since ousting Maduro and replacing him with
RodríguezRubio.”The only thing I can think is that Venezuela promised to build a 100 foot statue of Trump. They promised “gold”, but would -appropriately – use pyrite.
When the guy with the world’s loudest megaphone keeps blasting out nonsense, it’s dangerous. Most people know exactly what he is and ignore the noise. But the true MAGA diehards swallow it whole and vote based on the fantasy version of reality he feeds them. That’s the real problem.
I think ordinary people are used to being lied to. Parents lie; teachers lie; journalists lie; clergymen lie on Sundays; policemen lie when it suits them; politicians lie; judges lie; salesmen lie, or exaggerate.
Trump talks as a salesman. We allow for that. What we get tired of is the regular politicians and their unoriginal lying. They are like clergy and teachers, repeating the same lies over and over, thinking we are stupid enough to believe them, and not even noticing that they are lying, because they are so used to it.
I don’t know how the Venezuelans are taking Trump’s measures to restore order and prosperity to their country, but if the lack of stories from the journalists is any guide, they don’t resent it in the way that the Persians do, and they don’t resent it as much as the Russians resent the American attempt to take control of their country by way of the Ukraine.
Well at least YOU don’t lie. You admitted to being a pedophile and a Trump cult member. Not many would do that.
https://mishtalk.com/economics/does-president-trump-have-any-idea-what-passports-are-for/#comment-449328
On the topic of lies, here’s Arthur telling the truth about how he’d rape kids (if he doesn’t already)! Not pictured: him accusing everyone of being jealous of Epstein earlier that week.
I was accusing you of being envious of Epstein, not jealous of him. There is a slight difference. And no, I don’t want to rape kids. I prefer most of my woman friends to be beautiful in a mature way, nowadays. I prefer them to have more mature minds than most of you chaps, too.
We shall see how the Venezuelan people take it. They know how to riot down there.
Canada won’t see any new pipelines anytime in the next 20 years. It’ll take 10 years just to get Indigenous groups on board. Many Canadians will be begging to be the 51st before that happens.
“Canada won’t see any new pipelines in the next 20 years.”
I will take that bet. How much do you want to bet? And I won’t have to wait 20 years to collect.
List of planned/proposed projects
Total planned/proposed capacity: ~2.25–3.0 million bpd depending on which projects advance.
You know far more about energy than I but all the pipelines you mention are nothing new. Canada has a long history of failed attempts at building pipelines and I’m not optimistic this time around. It will take a lot of pain before the Indigenous, greens, public, and politicians get behind even one of those. Even today, there is resistance and intransigence at all levels.
Pipelines are no-brainers for Canada but Canadians have to wake up. Perhaps that could be a win for Trump – but he may need yet another term to finally open our eyes. God help us.
And now that BC has granted land rights to so many tribes it’s going to be impossible or all but impossible to get pipelines over their lands. Its insane what the Government has done.
Correct. Nothing new. But they put the lie to Jeff Larrry’s stupid comment. Several of those will be built.
Canadian pipeline plans usually involves indigenous ownership these days to get them onside. So that is less of a problem.
The two biggest hurdles right now are getting Canadian oil companies to commit to expand production to fill those pipelines, and to get commitments from pipeline companies to fund and build them.
All those companies seem risk averse unless the government steps in to help fund the projects. That was the only way to get the Keystone XL expansion. The government had to take it over and completely pay for it to be built.
energy east is also a possibility oil to fhe irving refinery in new brunswick
yes. a possibility
Plus, my understanding is the Canadian government is cutting ownership positions in new pipelines to the /first Nations people involved to get quicker buy in.
Yep.
Perhaps…
Give us your oil and we won’t kill you.
Well, not as often.
Or is it different?
Trump’s announcement is much ado about nothing. Similar to his 40+ announcements about winning the Iran war (and also taking over Iran’s oil). It’s all fantasy.
Oil companies have very little interest in Venezuela. There are many reasons why:
An illegitimate government which is likely to be replaced in the future by a government that may rescind this “deal”. They have been burned before in the same way when a new Venezuelan government comes in and changed the rules.
Decades of neglect. There is literally no infrastructure to support drilling activity. No water. No roads. No electricity. No upgraders. No pipelines. Insufficient ports. Costs of rebuilding the infrastructure range in the $100 billion to $300 billion range. The time period is 10 years plus to get from the 1.2 mbpd output to the previous 3.5 mbpd high. And that’s if everything works out perfectly.
Security. Drillers have to deal with bandits, gangs, and organized crime that are rampant in these regions. Cost of security is significant.
To justify the time and expense, oil companies need an oil price of $90+ in order to even “consider” an investment decision. (So much for Trump’s claim of $50 oil.)
There are better investments elsewhere all over the world with lower costs, and less risk. And oil companies have already committed their capital budgets for the next several years to these other projects. Will they switch from what they have already committed to and take a huge chance on Venezuela? Highly unlikely.
US refineries. Venezuelan oil is sent to gulf coast refineries that are designed to handle it. Currently those refineries are taking in 0.6 mbpd of Venezuelan oil. There is NO physical way of getting Venezuelan oil to the US midwest PADD2 region that is currently supplied by 4 mbpd of Canadian oil. I suppose you could spend tens of billions to build new pipelines over the next decade to eventually get Venezuelan oil to the midwest if you really wanted to.
Assuming Trump’s plan works (it won’t) it will take over 10 years and hundreds of billions to increase Venezuelan exports to 2 mbpd and replace half of what Canada sells us at a cheaper price.
In those 10 years, Canada is planning to build more pipelines to their west coast in order to ship more oil to Asia. The only question is whether those pipelines will carry some of what is currently sent south to the US, or if it will be new production that is in addition to what they currently send to the US.
VL:REB. Thanks.
I agree. He’s just trying to jawbone the markets and electorate before the midterms
We’re going to hear alot more foolishness over the next 8 weeks from the clownmaster
Canada is going to face a lot of opposition to new pipelines from the Indigenous peoples (Indians) in BC. They’ve been granted a LOT of new power by the British Colombia government including potential to block the announced pipelines and port upgrades.
It may be that there won’t be much increase of oil to the West Coast of Canada anytime soon.
Are you betting on this announcement or just ignoring it? Just curious.
Ignoring it until it actually becomes something worth acting on.
Why don’t Canadians build refineries and sell value-added end products?
“ Why don’t Canadians build refineries and sell value-added end products”
They do.
Canada has 16 refineries with an output capacity of 1.9 mbpd of product, which matches Canadian demand.
Refineries cannot continuously run at 100% because of safety, mechanical problems, accidents and normal maintenance. So Canadian refinery output averages 1.6 mbpd and Canada must import some refined product in the eastern half off their country. They are self sufficient west of Ontario.
Not all refineries are the same. Some are optimized for heavy crude, some for light crude, etc. This is true in both Canada and the US and refineries typically are built to use the oil that is close by and readily available.
In the east, Canada’s refineries mostly use light crude and in the west they use heavy (an over simplification to keep my explanation short). In the west, they use heavy.
Just like the 26 US refineries in the midwest PADD2 region use Canadian heavy oil almost exclusively.
The design of the entire north american oil and refining system is based on economics and geography; not on borders. It developed naturally over time based on free market economics.
You could ask many similar questions like:
Why doesn’t the US produce all it’s own potash, aluminum, and kraft pulp?
One word: Lebensraum.
Making the US economy more fascist every day, to match the fascistic quality of its bullying & war-making.
Using the traditional definition of co-mingling of government and corporate interests.
Chevron might agree to pretend to pump a few more barrels a day but without billions of dollars of investment nobody cares, someone call Natalie the Orange guy needs a rub and tug
Only 2 more yrs of Trump.
The next POTUS will want nothin’ to do with Venezuela – certainly not keeping them as a colony.
Younger Americans have no interest in colonialism.
What is in it for trump and his family? He doesn’t do anything that doesn’t benefit him personally.
Some surveys of insider bets on prediction markets might be in order. Also a very old-fashioned tactic, with a big update already apparent with the Trump family: “consulting contracts” for Trump-related parties.
There was an announcement quite awhile back that Trumpists would be relaxed (lax) on enforcement of the federal foreign bribery law, Foreign Corrupt Practices Act.
As structured, I doubt it will work out in Venezuela. We don’t even have to see an overthrow of the current Venezuelan gov’t (legally via an election or by military coup). All it would take are a handful of successful guerilla attacks on infrastructure and that would immediately pump the brakes on investment.
Why is it that when the current Republican administration “wins” it feels like the American people lose?
Or it feels like he is stealing, and cutting us in on it whether we want that or not. The greediest elites go for that without hesitation, but regular folks might wonder about what is left of our tattered reputation.
When did USG do something major you liked? Major.
I cannot think of a damned thing in 40 years.
You could do this kind of thing in the 50s as the general population didn’t really know what is going on. Can’t really see this surviving more than a few months.
How do the evangelical nutters in America justify this theft.
Same way they brought us the divine blessings of human slavery.
Two words: prosperity theology.
Show up tomorrow morning at one of their a
pancake breakfasts to find out.