OPINION:
On Aug. 31, the White House announced a new oil deal with Venezuela, calling it the largest in world history and a landmark step for American energy and national security.
But those claims will soon be tested — and the test has nothing to do with Venezuela’s oil fields. It is about which ships will carry that oil to the United States.
The choice is made once the first tanker leaves a Venezuelan port.
American law requires American-flagged ships to carry this oil, in keeping with the Cargo Preference Act, which states that a share of government-owned, -purchased or -financed cargo must travel on U.S.-flag vessels. The oil in this deal qualifies.
The federal government holds an equity interest in North American Blue Energy Partners and has contracted to buy at production cost, with first refusal on the balance. That makes the oil — especially the share expected to refill the Strategic Petroleum Reserve — “government-impelled cargo.”
The law leaves no room for interpretation. The administration does not need a new executive order or legislation to enforce it; it just needs the will to act before the first shipment sails.
The Trump deal aims to reduce the influence of foreign powers (particularly Russia and China) in the Western Hemisphere. Shipping the oil on vessels tied to those adversaries would undermine this core priority, especially for the reserve that the administration has pledged to rebuild.
U.S.-flagged transport also protects the jobs that the deal promises. U.S.-flagged vessels employ American mariners, pay American wages and depend on American shipyards. Without cargo preference, foreign interests will likely capture these jobs and undercut the American worker.
The safety of American waters also requires U.S.-flagged transport. U.S.-flagged ships must pass Coast Guard inspections and meet American crewing, licensing and environmental standards.
The administration calls the Venezuela deal a major achievement for American energy dominance and national security — but whether that is true depends on how the oil is shipped.
ELIZABETH O’CONNOR
Executive director, American Maritime Congress
Washington
Please read our comment policy before commenting.