There is no doubt, it is the deal of the century. For Trump, of course. It is a “negocio redondo,” a perfect deal. Irúa Euribe, a Venezuelan geologist who worked at Pdvsa, the state energy company, Caracas’ treasury, says it clearly. She talks about it from Houston, where she participated in the recent Global Energy Summit.
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Irúa Euribe, Venezuelan geologist
Dr. Euribe, Donald Trump announces a great deal that seems like an expropriation. Is that so?
Yes, now they will “control” 65 billion barrels of crude oil, a significant amount, considering that Venezuela’s proven reserves amount to 300 billion barrels and are the largest in the world.
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An agreement of this magnitude will need to pass through the Venezuelan Parliament. Or perhaps even a constitutional reform. No, unfortunately not. The new Hydrocarbons Law, which Trump surreptitiously imposed last January, includes an annex, the “Regulation,” whose contents were only made public in July, which omits to specify the duration of concessions to American companies, so Trump can do whatever he wants without any parliamentary approval from Caracas. Obviously, the United States will not own the basins but will have the right to exploit them. Then another key point: the creation of a vehicle company, of which the Trump Administration will control 51%. This “umbrella company” will allow American companies to make operational decisions without any technical or legal complications.
How did such an agreement come about without stumbling over the legal constraints that oil-producing countries impose on foreign companies? There has been a progressive hollowing out of Pdvsa; following the initial idea of a “breakup,” others followed. And the economic weakness in which Pdvsa currently finds itself was exploited. Schlumberger, the largest oil services company in the world, is headquartered right in Houston. Well, Schlumberger will have a monopoly on “integrated studies.” That is, the detailed mapping of all technical data necessary to start the exploration and production phase. It is an unfair competitive position that completely sidelines Pdvsa. But there have been other “unfair” operations as well.
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