President Donald Trump announced on Friday a new oil agreement with Venezuela, stating that the United States will have “majority” control of 65 billion barrels of proven oil reserves in the South American nation. The announcement, made on Truth Social, claims the deal was secured at no cost to the American taxpayer.
Details of the agreement
Trump wrote that Secretary of State Marco Rubio and Secretary of War Pete Hegseth, working closely with Venezuela's interim president, Delcy Rodriguez, and through a partnership with private business, secured majority US control of more than 65 billion barrels of proven oil reserves. The president said the agreement would more than double American oil reserves.
Secretary Rubio responded on social media, calling the deal “a huge win for both the American and Venezuelan people.”
Context and background
Venezuela holds an estimated 303 billion barrels of proven oil reserves, the largest in the world. Since the US captured and removed former president Nicolás Maduro from power in January, Washington has sought to secure a stable flow of Venezuelan crude for US refineries while promoting American investment into the country's deteriorated energy industry, which currently produces about 1.25 million barrels per day.
Trump faces pressure before November's midterm elections over rising gasoline prices, which could be eased through cheaper oil supplies and expanded output. The US has also been exploring ways to replenish its strategic petroleum reserve, including potential crude swaps with US producers.
Reactions and concerns
The Trump administration's talks with Venezuela were first reported earlier this week by the Wall Street Journal and Axios. The reports have caused unease and anger among members of Venezuela's opposition, who are already critical of Trump's failure to bring about genuine political change after capturing Maduro.
One well-known opposition figure, who asked not to be named because of the sensitivities of criticizing the US, described the deal as “a land grab – a massive land grab.” The figure added: “It's revolting because this is not the United States one would have [expected]. This is not the United States of the Marshall plan. This is a rapacious, mafioso United States.”
The agreement is expected to significantly expand US access to Venezuelan oil, potentially affecting global markets and the strategic petroleum reserve, though specific implementation timelines have not been released.
