• President Trump announced that the US and Venezuela are working to produce "millions and millions of barrels of oil a week" for the United States, building on a recent oil partnership.
  • The first cargo of 1 million barrels under the agreement with North American Blue Energy Partners (NABEP) arrived in Texas on October 27, with more shipments expected.
  • The deal grants the US a 35% stake in NABEP's parent company and rights to buy 20% of NABEP production at $30 a barrel, but questions remain about legal authority and transparency.

Expanding Energy Ties

President Donald Trump said Tuesday that the United States is working with Venezuela to produce "millions and millions of barrels of oil a week" for the US market, touting an expanding energy partnership that has already delivered its first cargo. The remarks, made during a campaign rally ahead of the midterm elections, followed the arrival of 1 million barrels of Venezuelan crude in Corpus Christi, Texas, on October 27 under an agreement with North American Blue Energy Partners (NABEP), a privately held Venezuelan oil producer.

The shipment, confirmed by NABEP, marks the first under the deal announced in August. A White House official told Reuters that the US government would sell the crude to refineries operated by Exxon Mobil (XOM) and Venezuelan-owned Citgo. Trump described the cargo as a "free gift" from Venezuela, but CNN reported Monday that its value would be recovered through adjustments to future deliveries' pricing. The arrangement therefore involves no upfront payment for that cargo, not necessarily free oil over the life of the contract.

Deal Structure and Production Goals

NABEP, Venezuela's second-largest private oil producer, reported output of 223,509 barrels of oil equivalent per day as of October 19, up from about 18,000 barrels per day two years earlier. Its largest active project, Petrozamora, reportedly reached 115,000 barrels per day. The company aims to reach 500,000 barrels per day by the end of 2028, though that is a company target, not an independent forecast.

The agreement provides for a 35% US stake in NABEP's parent company and the right to buy 20% of NABEP production at a reported base price of $30 a barrel. ProPublica's review of the contract also found priority purchasing rights over remaining production for 50 years and emergency rights to buy its entire output. The deal awarded NABEP 14 additional fields, bringing its total to 17, without a competitive process, according to Reuters.

Political and Legal Hurdles

The partnership, which follows the January US military operation that captured and removed Nicolás Maduro, has drawn scrutiny from lawmakers. Senate Armed Services Committee Democrats have questioned whether the Pentagon office involved has authority to execute the foreign investment while Venezuela remains under US sanctions. Separately, ProPublica identified questions about the compatibility of reported concession lengths with Venezuelan law.

Critics also question the noncompetitive field awards, undisclosed investors behind the Barbados-registered parent, and protections designed to make the venture difficult for future administrations to change. Alejandro Betancourt, NABEP's CEO, has faced international money-laundering investigations; his representatives deny wrongdoing and told ProPublica that neither he nor fellow signatory Orlando Alvarado had been charged with a crime in any country.

Market and Economic Implications

The immediate benefit is access to discounted crude for the Gulf Coast refining market. NABEP emphasizes the relatively short voyage: the delivery took just over a week, versus more than a month for Middle Eastern crude, according to its CEO. However, oil experts cited by The Washington Post did not expect this shipment or the agreement to significantly affect US pump prices in the near term. The central constraint is the pace of additional production, not the headline volume of underground reserves.

The $30-per-barrel figure is also not necessarily the delivered cost. ProPublica reported that some blending-material costs are excluded; such materials can be needed to move Venezuela's very heavy crude. NABEP disputes the significance of this concern, saying much of its production needs little or no blending.

For Venezuela, the partnership could bring investment, oil-sector employment, and increased exports to an industry weakened by underinvestment, mismanagement, and sanctions. Venezuela was producing roughly 1.2–1.25 million barrels daily in the reporting reviewed, compared with more than 3 million in the 1990s. The distribution of benefits remains contested: ProPublica found that the agreement did not explicitly guarantee the estimated $200 billion in Venezuelan tax and royalty payments promoted by the White House.

What to Watch

Trump also said in August that Venezuelan oil would help replenish the US Strategic Petroleum Reserve, but the first NABEP cargo is being directed to commercial refineries, not the reserve. At the October 27 Texas event, Trump separately announced a rollback of Biden-era methane rules, a policy initiative politically linked to his argument for cheaper and more abundant energy.

Near-term indicators to watch include further cargoes and refinery sales, actual shipment volumes, realized delivered prices, independently verified production, and completion of the ownership arrangements. Reuters previously reported that substantial production growth requires significant investment and infrastructure work.

The development is consequential chiefly because it establishes a long-term commercial and geopolitical framework. Its eventual economic value will depend on new production, enforceable contracts, transparent finances, and political durability—not the announced reserve figure alone.

Correction: October 29, 2026: An earlier version of this article misstated the date of the first cargo's arrival. It arrived on October 27, not October 26.