President Donald Trump announced a deal granting the United States majority control over more than 65 billion barrels of Venezuelan oil reserves.
The United States has secured majority control over a substantial portion of Venezuela’s vast energy reserves, following an agreement announced by President Donald Trump on Friday. The pact involves 17 strategic oil fields regions.
According to details provided by a U.S. official, interim Venezuelan President Delcy Rodríguez granted a private joint venture a 100-year concession to operate the targeted fields. The venture functions as a joint project between the U.S. government and an experienced private operator in Venezuela. Washington will maintain a 55% stake in the venture, split between direct equity and the right to acquire oil at cost.
Cabinet Negotiations and the Trump Administration’s Oil Gambit
Trump heralded the arrangement on social media as THE BIGGEST OIL DEAL IN WORLD HISTORY!
asserting that the transaction was secured at no cost to American taxpayers through a partnership with private business. He noted that the agreement more than doubles U.S. oil reserves and will eventually lower domestic fuel prices.
The administration deployed high-level officials to seal the agreement. Secretary of State Marco Rubio and Defence Secretary Pete Hegseth negotiated the terms while working closely with Rodríguez. Rubio touted the arrangement on social media as a major strategic victory.
“For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela’s economy.”
Secretary of State Marco Rubio, via CBS News
Rodríguez confirmed the pact in a statement on X, describing it as a historic agreement that will generate over $209 billion in tax revenue for the Venezuelan government.
Geopolitical Shifts in Caracas Following Maduro’s Removal
The oil agreement follows months of dramatic upheaval in South America. In January, the U.S. military carried out an operation authorized by Trump to capture socialist President Nicolás Maduro. Maduro was removed from power and brought to New York to face federal narcoterrorism and drug trafficking charges.
Following Maduro’s ouster, Rodríguez assumed power as interim president. The U.S.
The White House has argued that Venezuela effectively stole American wealth when former President Hugo Chávez nationalized foreign-owned assets decades ago.
Infrastructure Hurdles and Market Skepticism Over Production Goals
While Venezuela possesses the world’s largest proven oil reserves—estimated by the U.S. Energy Information Administration at 303 billion barrels, or roughly 17% of global supply—decades of underinvestment and crumbling infrastructure have severely degraded output leaving the country producing only about 1% of the world’s oil.
Market analysts have urged caution regarding the immediate economic impact of the announcement. Oil market researcher Rory Johnston noted that the 65-billion-barrel figure serves largely as a headline number, with the concrete operational details still remaining largely opaque.
Energy executives have also highlighted lingering structural concerns.
“We’ve had our assets seized there twice,” Woods said in January, before Venezuela passed its oil industry reforms. “To reenter a third time would require some pretty significant changes from what we’ve historically seen here and what is currently the state.”
Darren Woods, CEO of ExxonMobil, via CBS News
Domestic energy economists point out that any significant expansion of Venezuelan crude output remains a long-term endeavor. Meanwhile, U.S. gas prices stood at an average of about $4.09 a gallon on Friday, compared to $3.21 at the same time last year, according to data from the American Automobile Association. Prices have faced mounting upward pressure alongside a broader slowdown in Gulf petroleum transit resulting from the ongoing war with Iran.
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