Blitz Bureau
NEW DELHI: The United States is seeking to create what Vice-President J.D. Vance described as an effective 65-billion-barrel oil reserve through a new arrangement with Venezuela, with American companies expected to develop production and US taxpayers receiving part of the royalties.
Vance presented the agreement as a way to increase global oil supplies, reduce prices and strengthen energy security at a time when Iranian attacks on commercial shipping have disrupted markets.
“We’re using, of course, that successful Venezuela operation and some of the friendships and some of the relationships that have developed in the wake of that operation, to create what is effectively a new 65 billion barrel of oil reserve for the United States of America,” Vance told a White House press briefing.
Vance said private American companies would enter Venezuela and generate substantial oil revenue.
“Obviously, that’s going to mean world oil markets get only more supply that will lower costs for Americans,” he said. “That means a lot of revenue is going to go to the people of Venezuela.”
The Vice-President said the agreement had been negotiated by Secretary of State Marco Rubio, Defence Secretary Pete Hegseth and other administration officials.
“Thanks to the deal struck by Marco and Pete Hegseth and others in the administration, it actually sets us up to where the American people will directly receive some of the royalties as well,” he said.
Vance described the arrangement as beneficial to Venezuelans, American consumers and US taxpayers.
“So it’s good for Venezuelans. It’s good for anybody who’s buying gas, and it’s good for the American taxpayer as well,” he said. “So it’s very much a win-win thing.”
