OIL POWER SHIFT: US strikes MAJOR Venezuela oil deal

. RICH? RICH: I'LL -- ALEX HOGAN AT THE. WHITE HOUSE, THANK YOU. HARLEY LIPPMAN, GEOPOLITICAL. ANALYST, AND DAVID SCHENKER, SENIOR FELLOW AT THE WASHINGTON. INSTITUTE AND FORMER ASSISTANT. SECRETARY -- SECRETARY OF STATE. FOR NEAR EASTERN AFFAIRS. HARLEY, IN PRACTICE WHAT DOES. CONTROL OF 65 BILLION BARRELS OF. OIL MEAN, AND HOW MUCH IS IT. GOING TO TAKE TO GET THAT OIL. ONLINE? >> WHAT THIS MEANS IS A GREAT. STRATEGIC VICTORY FOR THE UNITED. STATES BECAUSE THIS OIL WAS.

GOING TO OUR ADVERSARIES. IT WAS GOING TO CHINA, TO IRAN, TO CUBA. AND NOW IT'S GOING TO BE GOING. TO THE UNITED STATES. AMERICAN CAPITAL IN, AMERICAN. COMPANIES IN, CUBA, CHINA AND. IRAN OUT. AND THIS IS SHAPING THE. STRATEGIC PICTURE OF SOUTH. AMERICA. WITH STRATEGIC OIL RESERVES. AND IT AFFECTS IRAN. AND THIS IS SHOWING HOW, WHAT A. WINS THE FOR THE UNITED STATES. FIRST, THE UNITED STATES CREATES.

STABILITY, THEN IT'S CREATING. ECONOMIC DEVELOPMENT, THEN IT. WILL CREATE POLITICAL. TRANSITION. MARCO RUBIO SAID IN JUNE THAT. THERE'LL BE FREE AND FAIR. ELECTIONS AS THE NEXT STAGE. SO THE AMERICAN PEOPLE HAVE TO. BE PATIENT AND WATCH WHAT'S. HAPPENING. WE'RE NOT EVEN AT HALFTIME, AND. WE'VE TURNED THE SITUATION. AROUND IN VENEZUELA IN FAVOR OF. THE UNITED STATES AGAINST OUR. ADVERSARIES. RICH: DAVID, HOW DOES THIS PLAY. INTO -- OR DOES IT -- PLAY INTO. THE CONFLICT WITH IRAN?

>> WELL, I THINK THAT IN THE. SHORT TERM IT REALLY DOESN'T. WE MAY BE ABLE TO REBUILD AS THE. UNITED STATES OUR STRATEGIC. RESERVES, BUT FOR THIS REALLY TO. PLAY OUT YOU NEED U.S. INVESTMENT. AND WE SAW THAT CHEVRON'S. ALREADY IN VENEZUELA. BUT EXXON EVEN TO IN JANUARY. SAID THEY WEREN'T GOING TO GO IN. BECAUSE THEY DON'T BELIEVE THAT. THERE'S THE REQUISITE STABILITY. IN THE COUNTRY. IN ANY EVENT, IT WILL TAKE ABOUT. A DECADE TO REBUILD THE ENERGY.

INFRASTRUCTURE IN THE COUNTRY. SO I AGREE WITH HARLEY,, THIS. YOU KNOW, A GREAT SUCCESS FOR. THE ADMINISTRATION TO BASICALLY. MAKE THIS A STRATEGIC PARTNER. PERHAPS WITH THE UNITED STATES. RATHER THAN CHINA AND TO SECURE. THESE RESERVES INTO THE FUTURE. BUT TO SEE THE BENEFIT, I THINK, IS GOING TO TAKE SOME TIME. RICH: HARLEY, HOW DOES CHINA.

PLAY INTO ALL OF THIS? >> WELL, CHINA WAS DEPENDENT ON. OIL FROM VENEZUELA AS WELL AS. IRAN. AND THIS IS A STRATEGY OF THE. TRUMP ADMINISTRATION. TO HAVE STRATEGIC LEVERAGE OVER. CHINA. WHAT ARE WE WORRIED ABOUT WITH. CHINA? WE'RE WORRIED THAT CHINA COULD. INVADE TIE TO WAN. WELL, IF PRESIDENT TRUMP --. TAIWAN. IF PRESIDENT TRUMP COULD TURN. OFF THE OIL SPIGOT, THAT COULD. HAVE A REAL, MEANINGFUL. INFLUENCE ON CHINESE MILITARY. ACTIONS AND IS COULD PREVENT A.

WORLD WAR. SO BY INITIATING THIS STRATEGY. OF VENEZUELA AND IRAN TO HAVE. GREATER CONTROL OVER OIL THAT. CHINA DESPERATELY NEEDS, THAT. PUTS THE UNITED STATES IN A. STRONG POSITION VIS-A-VIS CHAI. THAT. RICH: DAVID, NEW SANCTIONS THIS. WEEK FROM THE TREASURY. DEPARTMENT. HOW MUCH OF A BITE DID THEY. HAVE, AND ARE WE STILL WAITING. TO SEE9 WHAT THE. ADMINISTRATION'S GOING TO DO. WITH CHINA AFTER PRESIDENT TRUMP. MEETS WITH PRESIDENT XI? >> YEAH. THE SECONDARY SANCTIONS, I.

THINK, HAVE REALLY RATTLED IRAN. BUT I WOULD SAY WE HAVE TO WAIT. AND SEE WHETHER THE. ADMINISTRATION WILL PURSUE THESE. SANCTIONS AGAINST CHINA. THEY'VE BEEN RETICENT, I THINK, TO DO SO UNTIL NOW. THE BIG PRESSURE ON IRAN IS. REALLY THE NAVAL BLOCKADE AND. THE UNITED AIR -- ARAB EMIRATES. RECENTLY ANNOUNCING THAT THEY. WERE GOING TO SEVER ECONOMIC. TIES WITH IRAN. THE EMIRATES WAS IRAN'S ECONOMIC.

LUNG. IT DID SOMETHING LIKE 22, $23. BILLION WORTH OF BUSINESS LAST. YEAR. IT'S TAKING SOMETHING LIKE 15%. OF IRAN'S IMPORTS. THEY'RE THE SOURCE OF 30% OF. IRAN'S IMPORTS. AND, YOU KNOW, A SOURCE, A KEY. SOURCE OF DOLLARS. AND IF THEY ACTUALLY CUT THIS. OFF, I THINK THIS WILL ACTUALLY. BE EVEN MORE IMPORTANT THAN THE. SECONDARY SANCTION, THE THREAT.

OF TARGETING COMPANIES. PARTICULARLY IN ADVERSARIAL. STATES THAT ARE DOING BUSINESS. IN VIOLATION OF SANCTIONS EVERY. DAY. RICH: DAVID SCHENKER, HARL.