We’re going to have a longer post about this later today, but Canada’s biggest chip in their trade negotiations was oil and gas. That’s no longer the case. The Venezuelan oil deal and its provisions were released by the White House yesterday, and well, our neighbors to the North have lost a lot of leverage.
The White House publishes the details of the US-Venezuela oil deal:
— OSZ (@OpenSourceZone) September 1, 2026
Venezuela has granted North American Blue Energy Partners 100-year concessions for 17 oil fields.
🔴 The 17 fields contain ~65 billion barrels of proven oil reserves
🔴 The US government receives a 35% equity… pic.twitter.com/zq0B8dlVN1
From Fox Business’ Elizabeth McDonald:
NEWS Canada’s premiers now concerned that Trump’s deal for the US to control 65B barrels of Venezuelan oil will replace Canadian crude and reduce Canada’s influence in the market. 90% - 95% of Canada’s oil exports go to the U.S., worth about $126B. Venezuela could cut that by 40%…
— Elizabeth MacDonald (@LizMacDonaldFOX) August 31, 2026
Canada’s premiers now concerned that Trump’s deal for the US to control 65B barrels of Venezuelan oil will replace Canadian crude and reduce Canada’s influence in the market. 90% - 95% of Canada’s oil exports go to the U.S., worth about $126B. Venezuela could cut that by 40% starting in just a couple of years, oil pros say, so long as Venezuela can get its oil infrastructure back up and running that was destroyed by communism.
Plus Venezuela’s heavy crude can be easily shipped to Gulf Coast refineries specifically configured to process heavy, sour crude they specifically need. Canada’s problem is that Venezuela can more quickly deliver heavy crude the U.S. Gulf Coast by tanker, while Canada has to move much of its oil thousands of miles by pipeline. If Venezuela can restore production, U.S. refiners could have a new, nearby source of the heavy crude they need—and Canada could lose some of its leverage in its biggest market.
Yeah, well, that’s what happens when you’re us, and you’re not. Sorry, maple syrup jockeys, it’s Lake America. We have new streams of energy now, so what are we even doing here with this pseudo-trade war? You’re going to lose. Treasury Secretary Scott Bessent spoke to CNBC yesterday, partly because he knows we have the cards. For the average, conservative Canadians, you’re welcome to cross the border, but this game is over. Also, for Prime Minister Carney, how many times do you want to get bench pressed by this administration?
.@SecScottBessent on Iran: "Between [Operation Economic Outcast] and the blockade, they are cut off. We are starting to see their elected leadership openly complain about the state of the economy... In my experience with people like this, the main thing they care about is their… pic.twitter.com/7W5vTGhHfz
— Rapid Response 47 (@RapidResponse47) August 31, 2026
.@SecScottBessent absolutely TORCHES Canada:
— Rapid Response 47 (@RapidResponse47) August 31, 2026
"Very unfortunate that PM Carney has turned this into a political shouting match. I mean, we're not at war with Canada... What are they going to do — take their two submarines from the Edmonton Mall and sic them on us?" pic.twitter.com/NTVkgvnWMo
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