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00:00:30.000Venezuela. At first, when we all woke up and you saw Maduro was taken and he's in D.C. with the pictures and everything, you're like, wait, that quickly they took over Maduro? They did.
00:00:43.620Then you hear this deal and you sit there and say, well, this is a pretty ridiculous deal.
00:00:49.960Trump hails biggest oil deal in world history with Venezuela.
00:00:55.760Look, you got to give the man credit on this one and what he just did.
00:00:59.060And I'll tell you why this is so important here in a minute, but let me read it to you.
00:01:04.100President Trump said Friday that the U.S. struck a deal with Venezuela to take control of oil fields,
00:01:08.240holding 65 billion barrels of reserve riding.
00:01:13.020The United States of America has just entered into an agreement with the country of Venezuela
00:01:16.160on the biggest oil deal in world history.
00:01:20.700A source described the arrangement as a public-private partnership among the U.S. private companies and Venezuela.
00:01:26.960Well, it's not a purchase. They're giving us equity.
00:01:29.980A U.S. government source said adding the U.S. would get off, take oil, guarantee crude exchange at cost.
00:01:37.520The Pentagon Office of Strategic Capital would oversee its secretary of state.
00:01:41.640Marco Rubio, who negotiated the interim president, Delcy Rodriguez, called it a huge one, promising nearly $100 billion in private investments for Venezuela.
00:01:50.280Rodriguez said the deal means $209 billion in additional tax revenue for her country.
00:01:55.340Administration 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.
00:02:04.200And this led Chevron to invest $7 billion to double its Venezuelan output.
00:02:08.400And at first, if you remember, the Chevron CEO was a little bit skeptical.
00:02:12.060He said, no, we're going to invest $7 billion over five years to more than double its Venezuelan crude output.
00:02:18.340The largest commitment yet by U.S.-led revival of the country's oil industry.
00:02:23.180It won rights to develop the Carabobo 1 and Carabobo 2 South A fields in the Orinoco Belt besides the joint venture.
00:02:31.560So this is, we're building very formidable position in what we consider to be some of the best geology in the country.
00:02:39.040CO Mike Ward said, this is multiple billions of barrels of resource in place.
00:02:43.920Chevron expected about 600 billion barrels a day by 2031.
00:02:48.720That costs under $20 a barrel versus roughly 91 brands.
00:05:52.380This is this is 3D chess. The first thing is now long term, we've got more reserves coming in.
00:05:58.380What also is happening here, people got to take a look at these numbers that are going to be going into infrastructure in Venezuela.
00:06:06.840Two hundred nine billion dollars in tax revenue for the company to build water pumping that works 24 hours a day, maybe electrical power stations that work 24 hours a day, maybe.
00:06:16.480And to rebuild what was once a very proud country.
00:06:20.080And now I think that's first layer of chess. Second layer of chess, China needs oil. And if there is a permanent destabilization of Iran or Karg Island needs to be rebuilt over a couple of years, hint, hint what you're talking about, Pat, that hurts China.
00:06:36.220And then you go to China, and I've always felt that the best way to pay off our national debt was to drill in Anwar and sell to China at below world market, but at a profit over extraction.0.52
00:06:49.240And now slowly pay off our debt and make China pay off our debt.0.71
00:06:52.720And China's part of the reason we have the debt here in terms of trade imbalance and things.0.87
00:06:56.460So I think there's 3D chess going on, and there is a big number going on with China.
00:07:01.240If you put your foot on the hose on one side and become a major energy exporter on the other side, then you can balance your relationship a little bit more with China.0.54
00:07:14.140Everybody's going to get in the comments and say, no, no, no, China's going in the back door to do this.
00:07:18.380Really? You can only go in the back door if there's still a backyard.0.98
00:07:22.400And if Karg Island is disrupted, then there may be a back door for China, but there's still a backyard full of oil.0.76
00:07:29.080Well, while you're saying there's no backdoor, Xi hasn't visited the Middle East since 2022, and he just visited Egypt.0.64
00:07:47.960This is his way of maybe showing like, hey, Iran, I can't go to Iran.
00:07:51.700If he goes to Iran, it's public saying I'm with Iran.
00:07:53.900If he does that, there's no question about it.0.90
00:07:55.620But going to Egypt as a back channel to say, hey, we're still having some relationships with Iran of way of Shona.0.73
00:08:02.980But I do think there's something with this that has to do with China and Iran, because behind closed doors, if the U.S. is trying to destroy Iran's economy and put that kind of pressure on them, you have to make the phone call to China, make China right for them to be OK with it.
00:08:17.540Because if you don't get that relationship right, you're kind of screwed, Adam.
00:08:20.600Yeah. People say the term 3D chess with Trump. I use a different term, which is sequencing, which you always use.0.98
00:08:29.160Because if you play this out, what did Trump basically say that he's going to do day one that he got into office?
00:08:34.340He's going to drill, baby, drill. So just follow the sequencing of what he did.
00:08:38.440He basically declared a national emergency with our oil situation.
00:08:44.400The Strategic Petroleum Reserve, which is based in the Gulf Coast of Texas and Louisiana.
00:08:50.600So what did he do? He changed the Gulf of Mexico to the Gulf of America, symbolic and literal for our strategic oil reserve.
00:08:58.660Then he basically said, Alaska, I'm going to have you start drilling up there over there, get into everything that's going to Alaska.
00:09:05.100Then he implemented the Don Roe Doctrine. He said, before we do anything with Iran, let's focus on the Western Hemisphere.
00:09:12.660All right, we're going to take down the Panama Canal, and before we do anything in Iran, we're going to go basically capture Maduro and take over Venezuela.
00:09:21.700Who's been running Venezuela since the beginning of the year?
00:09:24.580Well, it's the viceroy they call Marco Rubio, just another little costume that Marco Rubio can put on.
00:09:30.260So then before they even went to Iran, they locked down our strategic petroleum reserve.
00:11:00.420And I hope there's an intention with Iran in mind because every day that goes by is one less day Iran has to deal with Trump.
00:11:12.740Every day, if J.D. gets elected or AOC gets elected, Iran's free.
00:11:16.700And so when you have this much pressure on Iran this long, everybody in the world realized dealing with Iran is a lot more complicated than you think.