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Deal announced on reserves
President Donald Trump announced that the United States has taken control of more than 65,000 million barrels of proven oil reserves in Venezuela, calling it "THE BIGGEST OIL DEAL IN WORLD HISTORY!"
“THE BIGGEST OIL DEAL IN WORLD HISTORY!”
The AP reported that Trump said the agreement could give the U.S. access to vast amounts of Venezuela’s untapped oil reserves, negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s acting President Delcy Rodríguez.
BBC News Mundo said the pact would grant the United States majority control of 17 oil fields and "more than 65 billion barrels of proven Venezuelan oil reserves," representing about 21.5% of Venezuela’s proven reserves estimated at around 303 billion barrels by the U.S. Energy Information Administration.
The BBC also reported that Trump asserted it would "more than doubles U.S. oil reserves," while Rodríguez confirmed the agreement and said private operators would develop 17 oil fields.
In the AP’s account, Rodríguez’s government said the deal involves the development of 17 fields with a proven potential of 65 billion barrels and that it could draw $100 billion in investment and yield over $209 billion in taxes for Caracas.
Control structure and officials
CBS News said a U.S. official told it the deal would grant the United States 55% effective output of a new private joint venture, with interim Venezuelan President Delcy Rodriguez granting a private company a 100-year concession to operate oil fields totaling 65 billion barrels.
CNN reported that a White House official said the negotiated deal will grant the United States "55% effective output of a new private joint venture" and that Rodríguez granted a private company 100-year concessions for the oil fields.
In a statement on social media, Trump wrote on Truth Social that "Following my instructions, Secretary of State Marco Rubio and Secretary of War Pete Hegseth" secured majority control for the United States "at no cost to the American taxpayer," according to the BBC.
The BBC also quoted Rubio presenting the agreement as "a great victory for both the American and Venezuelan peoples," while the AP said Rodríguez predicted the deal "will have a significant impact on our nation’s revival."
The AP added that the agreement allows the United States to partner with an unnamed private operator in Venezuela to create a new private company to take hold of the reserves, and that the company would be the second largest corporate holder of proven reserves after Saudi Aramco, according to a U.S. official.
Oil prices, taxes, and pressure
The AP said Trump faces pressure to show he’s lowering oil costs as the war in Iran reached a six-month milestone with no conclusion in sight, and it reported that the average price of gas in the U.S. stood at about $4.09 a gallon on Friday, according to AAA.
“The average price of gas in the U.S. stood at about $4.09 a gallon on Friday, according to AAA.”
CNN reported that the national average gas price sits at more than $4 a gallon and that the Iran war disrupted a fifth of the world’s oil supply for six months, while the U.S. emergency reserves haven’t been this small since the early 1980s.
The BBC said Rodríguez’s statement described the pact as including "an investment of more than US$100 billion and more than US$209 billion in taxes for the State," and it said the press release did not identify the 17 fields or the private companies.
In the AP’s account, Rodríguez’s government said the deal could draw $100 billion in investment into Venezuela’s oil industry and yield over $209 billion in taxes for Caracas, while the U.S. official said the oil bought from the new company would go toward filling the U.S. strategic petroleum reserve and toward military use.
ABC reported that Trump claimed the operation "will double" the country’s reserves and asserted it would "strongly increases our oil supplies and will strongly reduce gasoline prices for all Americans for a long time," while the AP noted that a significant drop in U.S. gas prices tied to the agreement should not be expected immediately.