Top Economist Slams Trump’s Venezuela Oil Deal ‘Theft’ — ‘Toppled Their Leader’ and ‘Had Him Sign Over Billions’

Economist Justin Wolfers criticized President Donald Trump‘s Venezuelan oil deal, labeling it as “theft” rather than imperialism or socialism.

Wolfers took to X on Monday to express his disapproval of the regime change in Venezuela and the subsequent oil deal. He noted that the oil belongs to the Venezuelan people and that the rights were given after the ousting of former President Nicolás Maduro and the installation of Delcy Rodríguez as interim president, who hasn’t faced an election.

“Toppled their leader, installed one who hasn’t faced an election, and had him sign over billions in oil rights. Call it what it is. It’s not imperialism, not socialism. It’s just theft,” said Wolfers.

The Deal in Question

Last month, Venezuela granted North American Blue Energy Partners (NABEP) a century-long claim to 17 oil fields containing roughly 65 billion barrels in reserves, as part of what the White House called a "historic oil agreement" to secure American energy dominance.

NABEP, Venezuela’s second-largest private oil producer, has granted the Pentagon’s Office of Strategic Capital a 35% stake in its parent company, at no cost. The State Department separately secured the right to buy 20% of all future output at production cost, along with a right of first refusal on the remaining 80%.

NABEP has planned to invest up to $100 billion in new Venezuelan oil infrastructure to boost production, while paying an estimated $200 billion in royalties and taxes to the Venezuelan government over the agreement’s first 25 years, as per White House.

Trump called the agreement "the biggest oil deal in world history," saying Venezuelan oil would help replenish the U.S. Strategic Petroleum Reserve and describing it as a "gift" to Americans.

The U.S. had about 46 billion barrels of proven crude oil and lease condensate reserves at the end of 2024, according to official data.

Venezuela Oil Surge Won’t Come Soon

Despite the optimism around the deal, analysts have warned that the agreement may not be as beneficial as it seems. GasBuddy analyst Patrick De Haan stated that U.S. refiners are already operating at near capacity and may not be able to process more oil, even from Venezuela.

De Haan said that Trump’s oil deal sounds "promising," but tapping the estimated 65 billion barrels will take years, indicating that fuel prices won’t fall immediately or within months.

Notably, Chevron Corporation (NYSE:CVX) earlier this month announced plans to expand its Venezuela operations. The company expects to invest over $7 billion to double its output over the next five years. Notably, the deal is separate from the U.S.-Venezuela pact, focusing instead on expanding projects, Reuters reported.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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