Washington: US President Donald Trump claimed that America has reached an agreement with Venezuela that will give the United States control over approximately 65 billion barrels of Venezuela’s oil reserves. Trump shared details of the deal on social media.
According to Trump, the agreement was reached following negotiations between US Secretary of State Marco Rubio, Defense Secretary Hegseth, and Venezuela’s interim president Delcy Rodriguez. Trump has described it as the world’s largest oil deal.
Trump wrote: “The United States has just made an agreement with the nation of Venezuela—the biggest oil deal in the history of the world!”
The announcement comes at a time when, on Trump’s orders, the US military launched an operation to arrest Venezuelan President Nicolas Maduro and bring him to America to face federal charges of narco-terrorism and drug trafficking.
President Trump is facing increasing pressure due to rising gas prices in America. Iran has been at war for approximately six months, with no signs of ending soon. Consequently, America has drawn down its strategic petroleum reserves, leaving less than 300 million barrels by early August.
Why Is America So Focused on Venezuela’s Oil?
Venezuela possesses one of the world’s largest oil reserves. According to available data, the country sits on approximately 303 billion barrels of crude oil underground—roughly 17% of the world’s total oil reserves. However, there’s a major contradiction: despite these massive reserves, Venezuela’s oil production accounts for only about 1% of global production. The primary reason is the country’s deteriorated and crumbling oil infrastructure. In other words, the oil exists underground, its location is known at scale, but the capacity to extract and refine it has been weak for a long time. America sees a business opportunity in rebuilding this capacity.
Oil Dynamics Shift After Maduro’s Removal
Following Nicolas Maduro’s removal from power in Venezuela, negotiations over oil between America and the country’s new government intensified. Trump had already appealed to American oil companies to return to Venezuela and restart operations. Delcy Rodriguez plays an important role in this story—she previously served as Petroleum and Hydrocarbon Minister in Maduro’s government and is now part of this new arrangement with America as interim president. Trump claims that Venezuela damaged American oil interests decades ago when Hugo Chavez nationalized American company assets. He is now presenting the new arrangement as economic recompense for America.
After removing Maduro from power in January, Trump had stated that American oil companies should return to Venezuela and utilize its oil storage facilities. Trump argued that Venezuela stole America’s oil when former president Hugo Chavez nationalized hundreds of foreign assets decades ago, including those belonging to American oil companies.
Venezuela possesses one of the world’s largest oil reserves—approximately 303 billion barrels of crude oil underground. According to the US Energy Information Administration, this represents roughly 17% of global supply. Experts note that unlike other parts of the world, where geologists must search for untapped oil reserves, Venezuela’s underground reserves are largely mapped and documented. However, due to poor infrastructure, the country produces only 1% of the world’s oil.
“This Will Bring Substantial Revenue to the Country’s Treasury”
Trump stated that the agreement is highly beneficial for America’s energy supply and claimed that it will more than double American oil reserves and help reduce gas prices. Venezuela’s interim president Delcy Rodriguez welcomed the agreement, saying it will bring substantial revenue to the country’s treasury.
Rodriguez said the country wants to become a major energy producer by leveraging its vast oil reserves, while also creating jobs, increasing worker income, and improving living standards. She stated: “In this way, Venezuela is beginning a new era of recovery, growth, production, security, and prosperity for its people.”
What American Officials Revealed
A White House official stated that the deal will give America a 55% share of oil produced by a new private joint venture. It is expected that this venture will become the world’s second-largest private oil company in terms of reserves. The official explained that, with American support, Rodriguez granted the private company a 100-year license to operate oil fields. The venture will be run jointly by the American government and a Venezuelan private company.
According to CNN, the American government has already acquired more than half the value of the new oil company, divided between equity ownership and guaranteed “at-cost offtake” arrangements. According to the official, the resulting oil will help refill America’s strategic petroleum reserve and meet the US military’s energy needs.
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