A sweeping U.S.-Venezuela oil agreement is drawing attention for more than its size.
At the center is Venezuelan billionaire Alejandro Betancourt, a businessman once investigated in the United States over an alleged money laundering scheme tied to state oil company PDVSA.
Here's what to know
Under the Trump administration's arrangement, Reuters reported that North American Blue Energy Partners would be partly tied to the U.S. government in exchange for long-term access to Venezuelan crude.
The Pentagon's Office of Strategic Capital would own 35% of NABEP, while the State Department would be able to buy 20% of the company's oil at cost and get priority access to the remaining 80%. Altogether, the deal would give the U.S. access for decades to about one-fifth of Venezuela's oil reserves.
Before the January 3 operation that ended with former Venezuelan President Nicolas Maduro being ousted and flown to New York on drug trafficking charges he denies, Betancourt served as a key go-between. He provided information used in enforcing a U.S. naval blockade targeting sanctioned Venezuelan oil tankers and later helped initiate talks with Delcy Rodriguez, who assumed the role of interim president after Maduro's capture.
Betancourt's lawyer, Sarah Chouraqui, pushed back on the allegations, per Reuters, saying, "The allegations in question have been examined extensively by authorities in multiple jurisdictions, and no charges have been brought against him."
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An unnamed U.S. official said Betancourt is not currently facing legal issues in the United States, Reuters reported.
More background
Federal prosecutors in Florida suspended an investigation into an alleged scheme to steal more than $1 billion from PDVSA and move the money through Miami real estate and bank accounts in Malta and Switzerland. Betancourt has been investigated by authorities in the U.S., Spain, and Switzerland, though he has not been indicted.
In May, Switzerland abandoned its effort to extradite Betancourt from the United Kingdom. At the same time, according to Reuters, the Zurich Public Prosecutor's Office said, "The criminal proceedings against the accused are otherwise unaffected and will continue."
What's being done?
The administration appears to be treating the oil agreement as a way to revive exports and support economic activity in Venezuela. Another trading deal, which Betancourt helped arrange in January, led to exports of more than 135 million barrels of crude and fuel to the United States, Europe, India, and the Caribbean by the end of August.
Swiss legal scholar and anti-corruption expert Mark Pieth commented after the extradition request was withdrawn, "You would not do that if the case is continuing," per Reuters.
Where can I learn more?
While Washington works to lock in long-term access to Venezuelan crude, the rest of the energy industry is making big bets across oil, nuclear power, hydrogen, solar, and other renewables. That mix of priorities helps explain why control of fossil fuel supply still carries so much political and financial weight, even as companies pour money into alternatives.
• In Japan, ENEOS prepared to raise over $3 billion for carbon-neutral fuels.
• Tech giants and major companies pledged to triple the world's nuclear power capacity.
• In global markets, analysts said money's screaming about renewables as investment priorities shifted.
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