Venezuelans are expressing dismay and outrage following an agreement that grants the United States control over approximately one-fifth of the nation's vast oil reserves. The deal, approved by acting President Delcy Rodríguez, is seen by many citizens as a profound blow to national pride and a surrender of sovereign resources, despite its potential to generate significant revenue for the country's devastated economy.
For over a century, oil has been central to Venezuela's national identity, with a deeply ingrained belief that these resources belong to the Venezuelan people. This sentiment has been amplified by the current agreement, which some interpret as the fulfillment of a long-standing U.S. objective to control Venezuelan oil.
"It's not just worrying, it's outrageous, because we, like a drop in the ocean, have no power to intervene," said Lisandro Castro, an architect in Caracas. "There is genuine collective concern in Venezuela right now about what we are witnessing."
The discovery of oil in the 1920s dramatically transformed Venezuela from a poor, agrarian society into an industrialized regional power. The oil boom fostered cultural developments, including the popularization of baseball, and attracted European immigrants who contributed to the nation's development. For decades, oil revenues funded public services and provided significant benefits to citizens, making the resource a point of national entitlement.
This national ownership solidified in the 1970s when Venezuela nationalized the industry, creating the state-owned Petróleos de Venezuela S.A. (PDVSA). PDVSA maintained majority control, with foreign companies operating as minority partners, and its revenues subsidized fuel, education, and healthcare.
However, declining oil prices in the 1980s and subsequent economic mismanagement, corruption, and political instability, particularly under Hugo Chávez and his successor Nicolás Maduro, led to a severe economic crisis. U.S. sanctions further crippled the industry and the broader economy, leading to widespread shortages and prompting millions of Venezuelans to emigrate.
Despite a more recent abundance of goods in markets, high inflation makes basic necessities unaffordable for many. Public sector workers often earn around $160 per month, while private sector employees averaged about $237 last year.
Rodríguez's agreement involves a joint venture with North American Blue Energy Partners, the second-largest private oil company in Venezuela. The venture is granted 100-year rights to 17 oil fields with estimated reserves of 65 billion barrels, out of Venezuela's total reserves of roughly 300 billion barrels. Experts anticipate that rebuilding the severely degraded energy infrastructure will take years, delaying any significant increase in oil production.
U.S. Energy Secretary Chris Wright stated that the U.S. mission in Venezuela is "to bring peace, freedom, opportunity and prosperity to the people." Rodríguez, in a national address, defended the agreement, expressing a desire for Venezuela to become an "energy powerhouse."
Former oil worker Romel Abreu, now a security guard, acknowledged the difficult situation, stating, "Something is better than nothing. If we didn’t have it, we would be fried." He, like many in the oil-producing regions, hopes for a return to an oil boom that would bring jobs.
Erwin Ayala, an oil company worker, voiced a common sentiment: "On the one hand, one feels and thinks that one of the largest oil reserves has been handed over. But if it’s for the good of the country and for future generations, then yes, we agree with that, because what good is having so much oil … if there’s no machinery, no technology, to extract it?"