Trump Leaves Venezuela’s OPEC Membership Decision to Caracas

Donald Trump has declined to say whether Venezuela should remain in OPEC, leaving the decision to the government of acting President Delcy Rodríguez.

His comments followed an energy agreement between Washington and Caracas that will allow U.S. companies to participate in developing a substantial share of Venezuela’s oil reserves. Venezuela helped found OPEC and has remained a member since the organization was created in 1960.

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I don’t know, that’s up to them. That will be their decision.

Asked whether Venezuela should continue in the group, Trump said, “I don’t know, that’s up to them. That will be their decision.” He nevertheless defended the new cooperation, describing the two countries as working as a team and saying oil would be sent to Houston, Louisiana and other destinations in the United States and around the world.

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We have a great relationship with Venezuela. In a sense, we form a team: we extract millions and millions of barrels of oil that are sent to Houston, Louisiana and many other places in the United States and around the world; we are making a fortune, and so are they.

Rodríguez said the agreement will last 25 years and aims to raise Venezuelan production to 1.5 million barrels per day. It includes 17 strategic fields, including eight greenfield blocks in the Orinoco Oil Belt, which she said hold a proven potential of 65 billion barrels. The projects provide for minimum royalties of 16% and income tax of 34%, with the revenue intended to support Venezuela’s economic recovery.

Trump has said the arrangement could quickly increase Venezuelan oil supplies to the U.S. market. He also said the partnership would generate billions of dollars for both countries.

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A proven potential of 65 billion barrels of oil.