What America’s $100 billion Venezuela oil investment could mean for climate change, oil spills and vulnerable communities

The United States is backing a major expansion of Venezuela’s oil industry, with investment of up to $100 billion in new infrastructure and access to more than 65 billion barrels of proven reserves.

Washington has presented the agreement as a way to strengthen American energy security and support Venezuela’s economic recovery. But the plan is also raising questions.

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Environmental groups now fear that a rapid increase in production could worsen those problems such as oil spilage, ageing pipelines, and others; particularly if new projects move ahead without clear safeguards, public oversight or protections for vulnerable communities.

A report by Mongabay highlights concerns over the environmental consequences of deeper U.S. involvement in Venezuela’s oil sector, including risks to wetlands, forests, coastlines and communities that depend on clean water and fishing.

America’s oil strategy comes with a major environmental question

The agreement is structured through North American Blue Energy Partners, or NABEP, a private company that the U.S. government says holds long-term concessions covering 17 Venezuelan oil fields.

For Washington, the agreement is part of a broader effort to increase access to energy resources in the Western Hemisphere. For Venezuela, officials have described it as a route toward rebuilding an industry damaged by economic crisis, sanctions, corruption and years of neglected infrastructure.

Venezuelan crude is generally heavy and contains high levels of sulfur and other compounds that make it more difficult to process than lighter grades of oil.

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Refining heavy crude can require more energy, potentially increasing emissions. Oil production can also release methane, while natural gas produced alongside crude is often burned through a process known as flaring.

Mongabay has previously reported that Venezuela’s environmental crisis is already linked to oil pollution, damaged infrastructure and weak enforcement.

Expanding production without repairing those underlying problems could increase the risks rather than solve them.

Oil spills remain a serious threat to Lake Maracaibo

One of the clearest warnings comes from Lake Maracaibo, a large brackish-water ecosystem that has supported fishing communities for generations.

The lake has endured decades of oil pollution, leaking pipelines, industrial waste and inadequate environmental monitoring.

Oil residues have damaged shorelines and affected water quality, while declining fish and shellfish catches have placed additional pressure on local livelihoods.

A Mongabay report on the lake described how fishing communities have struggled with pollution and economic hardship as oil infrastructure deteriorated. The damage is not only environmental: it also affects food supplies, employment and the health of people living near the water.

A rise in production could create more opportunities for leaks and spills if old pipelines, storage facilities and transport systems are not replaced or properly maintained. Heavy crude can be especially difficult to clean after a spill because it is thick and can cling to soil, vegetation and coastal surfaces.

Protected areas and Indigenous communities face uncertainty

Another major issue is the location of the oil fields included in the agreement.

Mapping by environmental groups has indicated that tens of thousands of square kilometres of Venezuelan oil blocks overlap with protected areas. Civil society organisations have called for greater clarity about where the 17 fields are located and whether their development could affect protected ecosystems or Indigenous territories.

Protected areas can contain forests, wetlands, wildlife habitats and water sources that are difficult to replace once damaged. Roads, drilling platforms, pipelines and power facilities can also fragment habitats even when a major spill does not occur.

Indigenous communities may face additional risks if projects affect traditional lands, hunting grounds, rivers or areas used for fishing and farming.

Transparency will shape the deal’s environmental impact

The scale of the proposed investment makes transparency especially important.

At present, environmental groups say officials have not provided enough public information about the precise location of the oil fields, the safeguards attached to the concessions or the procedures that would apply in the event of a spill.

Without that information, it is difficult for residents, researchers and watchdog organisations to assess the potential impact of the projects. It also becomes harder to determine who would be responsible for cleanup costs, compensation and long-term environmental restoration.

The U.S. and Venezuelan governments have described the agreement in economic and strategic terms, but environmental protection will require more than investment figures and production targets.

It will depend on independent inspections, public environmental assessments, clear reporting requirements and penalties for companies that fail to meet standards.

Mongabay has reported that Venezuela’s wider environmental crisis includes oil spills, deforestation, mining and the loss of clean water in damaged watersheds.

The new agreement could bring resources for addressing those problems—but it could also deepen them if production expands faster than environmental oversight.