President Donald Trump has announced a significant agreement with Caracas that grants the United States majority control over approximately 65 billion barrels of Venezuela’s proven oil reserves. This initiative is intended to revitalize the OPEC nation’s struggling energy sector while bolstering American supply. In a statement posted to Truth Social, Trump described the move as a “historic transaction” that effectively doubles U.S. oil reserves and is expected to substantially lower gasoline prices for American consumers.
The deal was finalized through the efforts of Secretary of State Marco Rubio and Secretary of War Pete Hegseth, who coordinated with Venezuelan interim President Delcy Rodriguez. According to the administration, the arrangement was secured through a partnership with private businesses at no cost to the American taxpayer. President Rodriguez has publicly welcomed the agreement, which is projected to contribute roughly $209 billion to the Venezuelan state treasury.
Officials in Venezuela are currently preparing to formalize the pact next week, with plans to grant new exploration and production rights to various companies, with a primary focus on U.S. firms. While specific details regarding the structure of the agreement, the involved companies, or the specific oilfields remain undisclosed, the deal follows weeks of intense negotiations. These talks centered on providing American corporations with long-term access to Venezuelan fields to guarantee crude supplies for U.S. refineries.
Despite the optimism from both administrations, the plan may encounter legal and constitutional hurdles within Venezuela, where the state maintains strict control over core industry operations. Reports suggest that a lease model was under consideration, potentially involving the auctioning of fields to U.S. producers. Currently, Venezuela possesses the world’s largest proven oil reserves but produces only 1.25 million barrels per day due to years of mismanagement, underinvestment, and international sanctions.
Secretary of State Marco Rubio emphasized the mutual benefits of the partnership, noting on X that the agreement secures stable, low-cost energy for the United States. For Venezuela, Rubio projected that the deal would attract nearly $100 billion in private investment, create thousands of high-paying jobs, and serve as a catalyst for rebuilding the nation’s broader economy.
Source: Al Jazeera
