US Takes Control of Venezuela's Oil: Is the Deal Worth It for Both Sides?

• The US has taken control of 30-50 million barrels of Venezuela's oil, to be sold globally with revenue held in American-controlled accounts.
• Venezuela, despite having the world's largest proven oil reserves, struggles with non-functional refineries, unreliable infrastructure, and hyperinflation.
• The immediate oil transfer, valued at $1.5-$2.5 billion, is significant for Venezuela but relatively small for the US economy.
• Reviving Venezuela's oil production to 1.35 million barrels/day could cost $20 billion and take two years, with uncertain returns for oil companies.
• Beyond oil, the US aims to reduce Russian, Cuban, and Chinese influence in Venezuela and foster political reconciliation.

Why It Matters: US control over Venezuela's oil offers short-term stability but faces significant long-term challenges for both nations.