Donald Trump Announces US Control Over 65 Billion Barrels of Oil from Venezuela's Reserves
US President Donald Trump announced an unprecedented American campaign to control approximately 20% of Venezuela’s vast oil reserves, leveraging the capacity of US companies to revive the country’s faltering energy sector. The move aims to provide a new source of crude oil to help lower fuel prices in the United States.
Trump stated on his platform, Truth Social, that his country had signed with Venezuela an oil agreement he described as the “largest” in history. He noted that it would secure a US majority stake in more than 65 billion barrels of Venezuela’s proven oil reserves at no cost to American taxpayers.
He explained that the “historic” deal would more than double US oil reserves and significantly boost American oil supplies, adding that the agreement would lead to a noticeable reduction in fuel prices for all Americans for a long time to come, in exchange for US assistance in placing Venezuela on a path toward “tremendous success and great prosperity.”
Trump said, “Based on my directives, Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth, in close cooperation with Venezuela’s interim President Delcy Rodriguez, and through a partnership with private companies,” have facilitated the deal, which he said would strengthen the growing relationship between the two countries. Rodriguez welcomed the agreement, stating it would revive the economy and government revenues, according to Reuters.
Trump’s announcement provided few details regarding the structure of the agreement, the fields or companies involved, or how the United States would exercise its controlling majority over the reserves. A list reviewed by Reuters showed that the fields are located in the Orinoco Belt and the Lake Maracaibo region.
Venezuela holds the world’s largest proven oil reserves but produces only about 1.25 million barrels per day, far below its potential due to years of underinvestment, mismanagement, and sanctions.
The deal would represent a massive expansion of the US role in Venezuela’s oil sector, as the Trump administration seeks to revive the country’s declining production and secure more crude oil for US refineries.
The announcement comes weeks after negotiations between the United States and Venezuela over an agreement that would grant US companies long-term access to a number of Venezuelan oil fields and ensure the resulting crude oil supplies to the United States.
Venezuelan officials are preparing to sign agreements next week granting new rights to explore and produce oil to several companies, particularly US firms.
Sources told Reuters earlier that a lease model was under consideration, with the possibility of offering the fields in a bid to US producers, but this arrangement could face legal and constitutional challenges in Venezuela, where the state retains control over core activities in the oil sector.
Rubio described the agreement as a win-win for both countries, saying on X that it would ensure stable and low-cost oil for the United States, help lower gasoline prices, and bring nearly $100 billion in private investment to Venezuela, supporting thousands of high-paying jobs and helping rebuild the country’s economy.
Rodriguez said the agreement would allow for a significant increase in production through the development of 17 strategic fields and would generate tax revenues for the country totaling $209 billion. She added, “These investments will not only help revive and modernize our industry, but will also contribute to our country’s economic growth, energy security in the Western Hemisphere, and greater balance in international markets.”
Analysts said they need more details on the legal and financial structure of the agreement before assessing whether it will attract large-scale investments. It also remains unclear whether the deal will lead to lower gasoline prices in the short term, as developing the infrastructure needed to produce, transport, and refine Venezuela’s heavy crude oil could take years.
The United States is also exploring ways to replenish its Strategic Petroleum Reserve, including the possibility of crude oil swaps with U.S. producers.
U.S. Energy Secretary Chris Wright announced that his country had boosted oil production to its highest level, making it the world’s largest energy producer. Wright said in a post on the platform X that the U.S. oil and gas sector had raised production rates to unprecedented record levels, making the United States the world’s largest producer of both oil and natural gas. He added that President Donald Trump’s agenda would build on this success, unleashing American energy to strengthen the economy and reduce costs.
