"This Is 3D Chess" – Trump’s Venezuela Oil Deal Could Cut China Off From Iran

Patrick Bet-David (0:00)

Venezuela, okay, at first when we all woke up, and you saw Maduro was taken, and he's in DC with the pictures and everything, you're like, wait, that quickly they took over Maduro? They did. Then, you hear this deal, and you sit there and say, well, this is pretty ridiculous deal. Trump hails biggest oil deal in world history with Venezuela. Look, you gotta give the man credit on this one, on what he just did. And I'll tell you why this is so important here in a minute, but let me read it to you.

President Trump said Friday that the US struck a deal with Venezuela to take control of oil fields holding 65 billion barrels of reserve, writing, the United States of America has just entered into an agreement with the country of Venezuela on the biggest oil deal in world history. Not US history, world history is source described the arrangement as a public-private partnership among the US private companies and Venezuela. It's not a purchase, they're giving us equity.

A US government source said, adding, the US would get off take oil guarantee crude exchange at cost. The Pentagon Office of Strategic Capital would oversee its Secretary of State, Marco Rubio, who negotiated the interim president, Delci Rodriguez called it a huge one, promising nearly 100 billion dollars in private investments for Venezuela. Rodriguez said the deal means 209 billion dollars in additional tax revenue for country administration officials initially disagreed on whether it was finalized but after Rodriguez's statement once said it's going to happen it's just a question of when and this led Chevron to invest 7 billion to double its Venezuelan output and at first if you remember the Chevron CEO was a little bit skeptical, he said no, we're going to invest 7 billion dollars over five years to more than double its Venezuelan crude output. The largest commitment yet by US led revival of the country's oil industry. It would one rights to develop the Carabobo 1 and Carabobo 2 South A fields in the Orinoco Belt besides the joint venture. So this is, we're building very formidable position in what we consider to be some of the best geology in the country CEO Mike Wirt said. This is multiple billions of barrels of resource in place. Chevron expected about 600 billion barrels a day by 2031 That cost under $20 a barrel versus roughly 91 Brent. Tom, why is this such a big deal?

Tom (2:25)

This is such a big deal because you know what Trump just did?

Trump just pulled the China on the rest of the world. Everybody talks about China and says, hey, they don't think short-term, they think long-term. We've talked about this, Pat, right? Yep. They think long-term. Trump just thought long-term. This is going to have an effect, but it's not going to have an effect on Tuesday. What does Joe Biden do? He rapes the strategic petroleum reserve, throwing oil out on the market to get the pricey gas down, running in the 2024 election and it didn't work. That is a short-term move that hurts.

We still haven't filled up the SPR, refilled it yet. Well, guess what? This is a long-term play. It's going to take, as it says, Chevron is putting the money in, but it's going to take one or two years to start getting more of it out. But what was hidden in here is they're expecting 600,000 barrels a day by 2031, which is not that long coming, at $20 a barrel extraction cost, Pat. 20 bucks a barrel.

Why? Because they're going to build new mining and...

Patrick Bet-David (3:27)

This is 93, Brent. Tom, let me ask you a question. How much of this has to do with, you know, Iran? Let me explain what I mean by this. You put these heavy sanctions on Iran. Iran's economy is getting hurt tremendously. Behind closed doors, they hit a couple of our ships, right, over the weekend, I think, in the last few days. And what did Trump do? Did you see what Trump posted yesterday, which video? Did you see the video Trump posted yesterday, what would happen to Karg Island if we bombed Karg Island? What was it yesterday? Have you guys seen this video or no? Can you post it? Yeah, this is us getting hit, okay, at the Strait of Hormuz, and, but Trump posted a video, if you can go to the video of Trump saying, what would happen if Karg Island was hit? Can you go to the clip of Karg Island clip that he just posted? Yeah, I mean, so this is legit stuff of what they did. But Trump goes and says, here's, just put Karg Island. Yeah, there you go, Karg Island. He posted a video showing, look at these damages, bye-bye Karg. He just did this, okay?