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U.S. Receives First Million Barrels Under NABEP Deal

By Drooid · Oct 28, 2026, 06:04 UTC · How we work

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Summary

U.S. government received the first million barrels of Venezuelan crude under the US-NABEP deal in Texas.
White House officials said the cargo cost American taxpayers nothing.
President Donald Trump visited Corpus Christi port and called the oil a gift to the United States.
The pact allows State and Defense departments to purchase 20% of NABEP production at cost.
Washington receives a 35% equity stake in NABEP’s parent company.

History

The 1973 Arab oil embargo, triggered when OPEC nations halted shipments to the United States, plunged global markets into a crisis. President Richard Nixon’s administration responded by creating the Strategic Petroleum Reserve, allocating $1 billion and storing 700 million barrels by 1977. Similarly, today’s US-NABEP agreement mirrors that past drive for energy independence, granting Washington a 35% equity stake in Venezuela’s oil firm. The precedent suggests that geopolitical shocks can reshape procurement policies, prompting future administrations to secure foreign crude through cost-free contracts.

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Historical Context

The 1973 Arab oil embargo, triggered when OPEC nations halted shipments to the United States, plunged global markets into a crisis. President Richard Nixon’s administration responded by creating the Strategic Petroleum Reserve, allocating $1 billion and storing 700 million barrels by 1977. Similarly, today’s US-NABEP agreement mirrors that past drive for energy independence, granting Washington a 35% equity stake in Venezuela’s oil firm. The precedent suggests that geopolitical shocks can reshape procurement policies, prompting future administrations to secure foreign crude through cost-free contracts.

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