President Donald Trump announced on Friday that the United States has entered into an agreement with Venezuela to secure majority control over more than 65 billion barrels of the South American country’s oil reserves. Trump touted the arrangement in an evening social media post as THE BIGGEST OIL DEAL IN WORLD HISTORY
and stated it comes at no cost to U.S. taxpayers, while more than doubling the existing U.S. oil reserve.
Trump Announces Historic Agreement for Control of Venezuelan Oil Reserves
According to the White House, the pact was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s interim President Delcy Rodriguez. The Venezuelan government’s press office did not immediately respond to a request for comment regarding the announcement.
Background on U.S.-Venezuela Relations and Regional Infrastructure Challenges
The announcement follows a U.S. military operation directed by Trump in January that resulted in the capture of Venezuela’s then-president, Nicolás Maduro, and his wife, Cilia Flores, who were brought to the United States to face federal narcoterrorism and drug trafficking charges. Following Maduro’s ouster, Rodriguez signed a law opening the nation’s oil sector to privatization, reversing decades of socialist policy, as reported by the Pittsburgh Post-Gazette.
Despite holding an estimated 303 billion barrels of crude oil—accounting for roughly 17% of the global supply according to the U.S. Energy Information Administration—Venezuela produces only about 1% of the world’s oil due to severely dilapidated infrastructure. Following Maduro’s removal, Trump hosted oil executives at the White House to urge a return to the region. While executives expressed interest, many voiced caution due to past experiences; ExxonMobil CEO Darren Woods remarked at the time that the country was un-investable.
Trump has argued that his administration’s actions have brought stability and sought to reclaim assets nationalized decades ago under former Venezuelan President Hugo Chavez.
Global Energy Pressures and Domestic Economic Impact
The deal arrives as U.S. consumers face mounting pressure from high energy costs ahead of upcoming midterm elections that will determine partisan control in Washington. The AAA reported that the average price of a gallon of gas in the U.S. reached approximately $4.09 on Friday, representing a 27% increase compared to $3.21 at the same time last year.
Energy markets have been heavily constrained by the ongoing war with Iran, which has reached a six-month milestone. The conflict has severely disrupted transit through the Strait of Hormuz—a crucial passageway formerly carrying about 20% of the world’s petroleum—where daily vessel crossings have plummeted from roughly 100 a year ago to only a handful. These geopolitical tensions have also caused U.S. strategic petroleum reserves to fall below 300 million barrels by early August, marking a reduction of more than 100 million barrels since the beginning of 2026.
Private Partnership and Investment Expectations
- Investment Projections: Secretary of State Marco Rubio stated on X that the agreement will usher in $100 billion in private investment into Venezuela.
- Economic Goals: Administration officials assert the arrangement will help lower gasoline prices for American consumers.
- Partnership Structure: Trump’s announcement referenced a partnership with unnamed private businesses, though the White House did not immediately provide detailed operational mechanics for the private sector involvement.
- Global Oil Reserves: Venezuela’s mapped deposits remain among the largest and most well-known globally, requiring no exploratory drilling compared to untapped reserves elsewhere.
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