Trump drinks Venezuela’s milkshake

Erika Beras (0:01)

This is Planet Money, from NPR.

Nick Fountain (0:06)

It's been one week since President Trump got on Truth Social and announced that the United States of America had just entered into an agreement with the country of Venezuela on the biggest oil deal in world history. All caps.

Erika Beras (0:22)

This announcement was a little vague on the details, but more have come out since. According to the White House, the US government, through the Pentagon, might be buying a stake in a Venezuelan oil company. The Venezuelan government is going to give that company the exclusive right for 100 years to extract oil from 17 of its oil fields, and the US will get a bunch of that oil for cheap.

Nick Fountain (0:46)

So, yeah. Eight months after Trump ordered the capture of the leader of Venezuela and told oil execs, we're going to be extracting numbers in terms of oil like few people have seen.

The US government is apparently in the oil biz.

We didn't know what to make of this. Venezuela, as we've talked about on the show before, has been blessed with one of the biggest reserves of oil in the world. Despite that, it is a poor country, and its oil industry is just barely sputtering along right now. Part of that has to do with politics, from American meddling to corrupt leadership. And part of it has to do with an idea we've covered before. The paradox of plenty. What happens when a country's whole economy is based on riches from one resource?

Erika Beras (1:37)

But part of it, the part we're going to focus on today because it's relevant to Trump's announcement, has to do with foreigners. Who gets to tap into the country's massive oil reserves? Because for the last century, Venezuela has been wrestling with this other paradox.

We're going to call it the can't live with them, can't live without them paradox. You know how sometimes you need help, but you don't like it when you get it? That has been the story of Venezuela's oil industry and outsiders. They have this long history of opening up to foreign investment and then shutting down again, opening up and shutting down again.

Nick Fountain (2:16)

Earlier this week, I called up a guy who witnessed back and forth from the inside.

José Ángel Pereira Ruimwyk (2:20)

Hello.

Erika Beras (2:21)

Hi.

Nick Fountain (2:22)

His name?

José Ángel Pereira Ruimwyk (2:23)

José Ángel Pereira Ruimwyk.

Nick Fountain (2:25)

His oil pedigree? Strong.

José Ángel Pereira Ruimwyk (2:27)

I am the third generation.

Nick Fountain (2:29)

His grandparents worked in Venezuela's oil industry at its founding when foreigners all but ran the show.

His parents were part of its nationalization. José himself found his true love because of Venezuelan oil. He and his wife Mervis were in a chorus run by the state oil company.

José Ángel Pereira Ruimwyk (2:46)

She was a Meso-Soprano, I was a Bariton, and we met there, young kids.

Nick Fountain (2:52)

You met in the state oil company's chorus?

José Ángel Pereira Ruimwyk (2:55)

Yes.

Nick Fountain (2:59)

Give me a song, give me a few notes.

José Ángel Pereira Ruimwyk (3:02)

Ferre yaca, Ferre yaca. Sure.

Erika Beras (3:05)

As José has been following the news out of Venezuela this week, he has been thinking about the lessons he and his family have learned. As they've watched Venezuela open its fast reserves of oil to foreigners and then decide to shut them out.

Nick Fountain (3:19)

In particular, José himself had a front row seat to one moment in the 90s, when, just like now, Venezuela's oil industry was faltering. And just like now, they opened up their previously nationalized oil industry to foreigners.

It was called, well, I'm going to need some help.

José Ángel Pereira Ruimwyk (3:40)

Apertura Petroler, opening.

Nick Fountain (3:42)

Apertura, like the aperture of a camera?

José Ángel Pereira Ruimwyk (3:45)

Apertura is opening, yes.

Erika Beras (3:46)

José kind of led the charge of the Apertura, the last time Venezuela opened its doors to foreign investment in their oil sector.

José Ángel Pereira Ruimwyk (3:56)

Me and my wife.

Nick Fountain (3:57)

You and your wife worked for the first project of the Apertura?

José Ángel Pereira Ruimwyk (4:02)

The very first. The very first project, yes.

Nick Fountain (4:04)

So you're the perfect person to talk to about this.

José Ángel Pereira Ruimwyk (4:08)

I was the guy that started all of this.

Nick Fountain (4:13)

A little bit of work for Planet Money. I'm Nick Fountain.

Erika Beras (4:15)

And I'm Erika Beras. There's been a lot of coverage of this evolving deal between the US and Venezuela. Some great stuff from our colleagues here at NPR about what the US hopes to get from this and whether it will work, the climate impacts. Today on the show, what does this mean for Venezuela? We're going to hear one take. The take of a Venezuelan oil man who's been through all this before.