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Deal for Venezuelan Oil
President Donald Trump announced Friday that the U.S. had entered an agreement with Venezuela to take control of more than 65 billion barrels of proven oil reserves, saying it was reached “at no cost to the American Taxpayer.”
“Trump on Friday announced an unprecedented U.S. push to take control of a fifth of Venezuela's vast oil reserves”
Trump said the deal would “MORE THAN DOUBLES American Oil Reserves” and would “substantially lower Gas Prices for all Americans.”
Reuters reported Trump was pursuing an unprecedented U.S. push to take control of a fifth of Venezuela’s vast oil reserves, with American companies expected to revive Venezuela’s energy industry and deliver crude to help bring down U.S. fuel prices.
The BBC said Trump hailed the agreement as “historic,” while Venezuela’s interim President Delcy Rodriguez hailed it as one that would help her nation’s economic revival.
Reuters added that Venezuelan officials were preparing to sign agreements next week granting new oil exploration and production rights to a number of companies, particularly U.S. firms.
Rubio, Rodriguez, and Pressure
Secretary of State Marco Rubio called the agreement a “huge win” for both countries, saying it would secure “stable reserves and low-cost oil” and help lower gasoline prices.
Rodriguez, who became interim leader after the U.S. seized President Nicolas Maduro in January, said late on Friday that the agreement would allow for a significant increase in production through the development of 17 strategic fields and result in tax revenue totaling $209 billion.
NBC News quoted Trump’s Truth Social post naming Secretary of State Marco Rubio and Secretary of War Pete Hegseth, working with “Highly Respected Interim President of Venezuela, Delcy Rodriguez,” and through a partnership with private business to secure majority U.S. control of more than 65 BILLION BARRELS of proven oil reserves.
CNN reported a White House official said the negotiated deal would grant the United States “55% effective output” of a new private joint venture, with Rodríguez granting 100-year concessions for the oil fields.
Reuters said the arrangement could face legal and constitutional challenges in Venezuela, where the state retains control over core oil industry activities, and that Trump did not disclose the structure, fields, or companies involved.
What Comes Next
The BBC reported that under the deal the U.S. government will retain 55% control of a joint venture with an “experienced private operator in Venezuela,” and that Rodriguez gave the venture a 100-year concession to operate in the oil fields.
“Under the deal the US government will retain 55% control of a joint venture”
Reuters said a list seen by Reuters showed the fields are in the Orinoco Belt and Lake Maracaibo regions, while also noting that Trump did not disclose how the United States would exercise majority control over the reserves.
CNN said the deal’s emphasis on lowering American gas prices came almost two months before the U.S. midterm elections, and it described the Iran war as disrupting a fifth of the world’s oil supply for six months.
The Washington Post said deal points reviewed by the paper and interviews suggested the U.S. government may ultimately need to invest significant amounts, with some fields lacking infrastructure or access to transport hubs to treat and move the crude.
Reuters added that the U.S. was also looking for solutions to replenish its Strategic Petroleum Reserve, including the possibility of crude swaps with U.S. producers, as analysts said they needed more details on the legal and financial structure before assessing whether it could attract significant investment.