The 17 fields in the deal hold about a fifth of Venezuela's 303 billion barrels of proven reserves, and the two governments still disagree on whether the lease runs 25 years or 100.
The leverage. Energy Secretary Chris Wright said Sunday, Sept. 6, that the United States holds "a lot of leverage" over Venezuela after last month's deal giving American companies the lead role in developing more than 65 billion barrels of its oil. His argument is that Caracas cannot sell the crude without Washington's permission, so it has no choice but to cooperate. ([TS]Washington has flipped Venezuela oil licensing three times since 2022 — grant, revoke, re-grant — about once every 12 to 18 months.)
"We have a lot of leverage over Venezuela. We control the sale of oil outside of their country. So right now they are forced to work in partnership with us."Energy Secretary Chris Wright
The objection. Opponents call the deal coercive, and say it will revive anti-American feeling across Latin America and can only be held in place by a standing U.S. naval force. Former Ambassador to Israel Daniel Shapiro said the celebration "ignores a clear reality: whatever degree of control we have would require a permanent, massive naval presence to sustain."
Still open. Operation Southern Spear, the Caribbean deployment behind the pressure campaign, had an authorization window that ran Sept. 1, 2025 through Aug. 31, 2026. No public Pentagon or congressional document extends or funds it past that date.
What the campaign has cost taxpayers so far
- U.S. spending on Operation Southern Spear, Aug. 1, 2025–Mar. 31, 2026: $4.7 billion, of which $3.8 billion is the naval deployment
- Peak daily cost, mid-Nov. 2025 to mid-Jan. 2026: over $20 million
- Gerald R. Ford carrier group alone: $11.4 million a day
Catch up
- Mon., Aug. 31 — A US-led venture won 25-year rights to 17 Venezuelan oil fields and access to 65 billion barrels.
- Tue., Sept. 1 — The Pentagon took a 35% stake in that venture.
- Thu., Sept. 3 — Chevron said it would spend $7 billion over five years to raise Venezuelan output to about 600,000 barrels a day.
- Fri., Sept. 4 — The IMF weighed a permanent Caracas office and Wright flew to Venezuela.