New oil order

Sep 02, 2026 Editorial, News

(Kaieteur News) – Can the US-Venezuelan oil deal last? Second, if it holds, for how long can that be? A massive oil deal for 25% of Venezuela’s vast reserves executed in secret, what enduring power does it have? And, since it is celebrated as this best oil deal ever, there is no reason to conceal its terms and conditions. Why does it have to be kept a secret? What about it has to be kept hidden from approximately 28 million Venezuelans?

From the point of view of Guyana, a relatively new oil producer, this historic and supposedly matchless US-Venezuela oil deal represent mixed news. It will take some time before Venezuela can ramp up its daily production, and make its impact felt on world oil markets. Nevertheless, the supply side of the oil equation just changed, and not minimally. Its relationship to oil prices can be biting and lasting. The oil is heavy, will require some adjustments to process efficiently and economically. Then, the arithmetic is curious, to say the least. The US-Venezuela oil deal covers six times Guyana’s reserves. Though its quality is a consideration, the sheer volume of oil involved has the potential to reorder the entire oil equation.