Trump's White House Will Likely Demand A Cut Of Venezuela's Oil Windfall, Says Former US Envoy

Former U.S envoy Richard Haass said that President Donald Trump's decision to depose Venezuelan leader Nicolás Maduro may be less about justice and more about securing access, and potentially profits from the Latin American nation’s massive oil reserves. This Is Foreign Policy For ‘Commercial Interests’ In an interview with Katie Couric on Sunday, Haass said that Trump’s press conference at Mar-a-Lago, hours after the U.S. military operation in the South American nation, made it clear that “this was all about the oil and all about access to the oil.” According to Haass, Trump mentioned Venezuela’s oil reserves “83 times” during his speech. Trump also said that American oil companies will be investing billions in the nation to restore its dilapidated oil infrastructure following years of mismanagement, sanctions and underinvestment. The White House did not immediately respond to Benzinga’s request for comment. See Also: Venezuela Aftermath: ‘Armed Groups Roaming the Cities,’ People Are ‘Very Scared’ While the administration hasn’t publicly signaled any intent to participate in the profits from Venezuela’s oil, Haass suggested that it's entirely plausible the White House would seek a financial stake in return for its military intervention. “If the administration's past is prologue,” he said, referring to Nvidia Corp.’s (NASDAQ:NVDA) 25% “Dragon Fee” tied to all chip revenue generated from China, “I would think that the Trump White House would take a percentage of it,” he said. Haass described the U.S. foreign policy posture as uniquely transactional under Trump. “This is a president who is formulating and carrying out a foreign policy where commercial interests, business interests are paramount. It's unprecedented, but that's what it is,” he said. He also cautioned that the challenges of reviving Venezuela’s oil production and the political fallout of this intervention may prove far more complex than advertised. Oil And Gas Stocks Soar Overnight Leading U.S. oil and gas companies with exposure to Venezuela are soaring in overnight trade on Sunday, with Chevron Corp. (NYSE:CVX), the only major American producer still operating in the country with a special Treasury license, up 10.36%. Followed by Halliburton Co. (NYSE:HAL), an oilfields services company that has historically maintained equipment in the country, up 14.19% overnight. With Venezuelan crude oil being one of the heaviest globally, Valero Energy Corp.’s (NYSE:VLO) sophisticated refineries are perfectly suited for this, leading the stock to rally 9.19%. The SPDR Oil & Gas Exploration & Production ETF (NYSE:XOP) was up 2.14% on Friday and is up 1.66% overnight. Click here for deeper insights into the fund, its constituents and competitors. Read More: Marjorie Taylor Greene Blasts Trump’s Venezuela Strike: Americans Are ‘Tired Of Being Ignored’ Photo courtesy: Shutterstock