The United States' strategic petroleum reserve reached, on Monday August 31, its lowest level since 1982, with 289.7 million barrels. It is estimated that the reserve could drop to 243 million barrels if the American president, Donald Trump, releases a final batch of 39 million barrels, following the agreement signed in March with the International Energy Agency. The United States and 29 other countries decided to release 400 million, following the start of the war in the Middle East, in February, with 172 million barrels belonging to Americans. The reserves are stored in 60 underground caverns, in Texas and Louisiana, and the minimum practical security level, according to a professor at Texas A&M University, is close to 250 million barrels, with operating below that level placing the infrastructure in a dangerous zone.
The White House revealed on the same date details of what it called the "largest oil agreement" in world history with Venezuela. The agreement was signed by the Secretary of State, Marco Rubio, and the Secretary of War, Pete Hegseth. The Venezuelan interim authorities granted the company North American Blue Energy Partners (NABEP) 100-year concessions for 17 oil fields with proven reserves of approximately 65 billion barrels, which significantly expands American reserves of approximately 46 billion barrels.
In exchange, NABEP granted the Strategic Capital Office of the United States Department of War a 35% equity stake in its parent company, representing up to hundreds of billions in value and dividends. The company also granted the State Department the right to purchase, at the cost of production, 20% guaranteed of the production from all current and future fields, ensuring a stable supply of low-cost petroleum to facilitate the replenishment of the Strategic Petroleum Reserve.
The United States government has veto power over the appointment of any member of the NABEP board of directors, and the majority of that board's members must be American citizens. The agreement is governed by American law and is subject to the jurisdiction of American courts. Millions of barrels of the new Venezuelan production will be processed in American refineries and pumped with American platforms and infrastructure, generating billions of dollars in investments in the United States and thousands of jobs in the country.
