Trump’s state capitalism comes to the oil industry with Venezuela deal
The U.S. government has acquired a 35% stake in North American Blue Energy Partners, a private firm granted extensive oil concessions in Venezuela. This unprecedented move gives the U.S. control over significant crude reserves, marking a major shift in American energy and foreign policy.
Why it matters
This deal represents a rare instance of direct government ownership in a foreign oil venture, signaling a potential shift toward state capitalism in U.S. resource management.
The Pentagon has received a big ownership stake in an obscure private oil company that will control crude reserves larger than ExxonMobil 's global portfolio if President Donald Trump 's Venezuela deal is successful.
The deal comes eight months after Washington ousted former Venezuelan President Nicolás Maduro in a military raid and co-opted the remaining regime led by interim President Delcy Rodríguez.
The Rodríguez government has granted North American Blue Energy Partners , headquartered in Barbados, concessions to 17 oilfields in Venezuela for a century. NABEP's CEO, Alejandro Betancourt, is a controversial figure who has faced investigations into his past ventures.
NABEP has in turn granted the Pentagon's Office of Strategic Capital a 35% equity stake at no cost to the U.S. taxpayer, according to deal details released by the White House this week.
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