To The Moon

The US government is seeking a potential partnership with energy investor Alejandro Betancourt through the Defense Department to secure significant interests in Venezuela's oil reserves, according to people familiar with the matter. Betancourt, a figure with a controversial background, has emerged as a key intermediary between Washington and Caracas in these discussions.

The negotiations reportedly involve as many as 17 oil fields distributed across Venezuela's primary oil-producing basins. Some people familiar with the matter indicated that the Pentagon's Strategic Capital Office could be the agency responsible for overseeing this investment. The office was established in 2022 by the Biden administration with the original purpose of leveraging private capital to advance critical technology development, and the Trump administration subsequently repurposed it to fill supply chain gaps.

The White House and the Pentagon both declined to comment immediately. A press official at Venezuela's information ministry did not immediately respond to a request for comment. North American Blue Energy Partners, the company controlled by Betancourt that stands as Venezuela's leading independent oil producer, also did not respond to requests for comment.

Should the Pentagon ultimately gain direct control over a foreign nation's energy reserves, this would represent yet another unusual arrangement in the US campaign to tighten its grip on Venezuela's oil industry. According to people familiar with the matter, one option under discussion could grant the US a lease lasting up to 100 years.

If the Trump administration moves directly into Venezuela's oil sector through the Defense Department, it would likely trigger legal and political disputes in both countries. Unlike the US International Development Finance Corporation, the Strategic Capital Office lacks explicit congressional authorization to directly hold equity stakes in projects, raising questions about the legal basis for the government's plan.