US Oil Trade triggers a flow of investment into Venezuela. When will its people benefit?

The huge investments promised by the US and Venezuela from their new oil production contract have stirred cautious optimism that Venezuelans may face a new phase of prosperity after more than a decade of economic and social turmoil.

Venezuela has the world’s largest proven reserves of crude oil, and some analysts anticipate it to enjoy some benefits from foreign investment even before it begins to expand output.

Analysts caution, however, that the major economic improvements will take time to come through and it is not obvious when the effects will be felt by the ordinary public. “Some citizens have voiced fears that the US will take the biggest profits and leave nothing for the people.

In addition, the Venezuelan opposition has expressed concerns about the current government’s ability to manage these new investments, claiming a lack of transparency and civil rights.

But experts say there is reason to be cautiously optimistic, arguing the project shouldn’t be analysed just on oil revenue but also on the boost it could give to other areas of Venezuela’s damaged economy.The U.S. government has inked a contract with Venezuelan firm North American Blue Energy Partners (NABEP) to develop 17 oil fields with an estimated potential of about 65 billion barrels of crude. U.S. President Donald Trump hailed the deal “historic” and said it will enable the US to buy 20% of the supply at cost.

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