A U.S.-Venezuela oil deal has been announced by President Trump and Interim President Delcy Rodríguez. The public knows virtually nothing about the details of the agreement — nor do I, a Special Adviser to Venezuelan Congressman Antonio Ecarri on Economic, Monetary, and Energy Affairs. This deal was clearly arrived at in secrecy, with no public debate, and signed under duress. Therefore, it is illegitimate and probably illegal.
This deal took not only me, but everyone I am in touch with in Caracas by surprise. That being said, it is vital to understand the importance of establishing clear private property rights in Venezuela’s vast oil reserves. The establishment of such private rights would give Venezuela’s oil reserves a positive present value. It’s important to understand why that’s not the case now.
