Trump says US reaches deal with Venezuela to control 65 billion barrels of country’s oil reserves
Trump Says US Reaches Deal on Venezuela Oil
Healfromzero.com – Trump says US reaches deal with Venezuela to secure majority control of more than 65 billion barrels of proven oil reserves, President Donald Trump announced Friday night. The agreement, framed by the White House as a mechanism to “more than double” America’s effective reserve base, was pitched against a backdrop of pump prices topping four dollars per gallon and midterm elections roughly two months out.
The geopolitical context sharpened the urgency. A prolonged conflict with Iran had throttled approximately one-fifth of global crude output for six months, draining billions of barrels from commercial inventories worldwide. The United States Strategic Petroleum Reserve had contracted to its smallest volume since the early 1980s, leaving both bond markets and voters exposed to sustained price pressure. In that environment, the Venezuelan arrangement arrived as a politically expedient supply intervention.
How the Agreement Is Structured
In a lengthy social-media post, Trump laid out the transaction’s architecture, crediting Secretary of State Marco Rubio and Secretary of War Pete Hegseth for negotiating alongside Venezuela’s interim president, Delcy Rodríguez, and a private-sector partner. A White House official then elaborated for reporters: the arrangement grants Washington 55 percent of effective output from a newly formed private joint venture that, once operational, would rank as the second-largest privately held oil company in the world by reserve volume.
“At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer.”
Rodríguez’s government has issued 100-year concessions covering the relevant fields, structuring the venture as a collaboration between the US government and a private operator based in Venezuela. The American side has locked in more than half the value of the new entity through a combination of equity ownership and a guaranteed at-cost off-take obligation. As production ramps up, the resulting flow of low-cost Western Hemisphere crude would be directed toward replenishing the Strategic Petroleum Reserve and meeting military fuel requirements.
Caracas Frames the Deal as Economic Renewal
Interim President Rodríguez issued her own statement Friday evening, positioning the agreement as a cornerstone of Venezuela’s post-crisis recovery.
“Our goal is to move toward consolidating our position as an energy-producing power, putting our immense reserves at the service of national development, job creation, increased income for our workers, and the well-being of our people.”
Rubio, speaking shortly after the announcement, amplified the economic narrative, describing the transaction as a “huge win for both the American and Venezuelan people.” He projected nearly $100 billion in private investment, thousands of high-wage positions, and a broader reconstruction of Venezuela’s battered economy.
From Military Operation to Petroleum Partnership
The deal did not emerge in a vacuum. Earlier this year, US forces executed a large-scale operation that captured former President Nicolás Maduro and his wife, transporting both to New York to face criminal charges. In the aftermath, Trump declared that American firms would be mobilized to rebuild Venezuela’s oil sector. That policy direction received legislative traction in January, when Venezuelan lawmakers—backed by Rodríguez—passed a revision to the country’s hydrocarbons framework, lowering barriers for foreign companies seeking to participate in domestic production. Venezuela already holds the largest proven oil reserves of any nation on Earth, making the legal opening a prerequisite for the scale of investment now contemplated.
For Washington, the arrangement addresses a dual imperative: reducing dependence on disrupted Middle Eastern supply lines while reinforcing the energy backbone of its military posture. For Caracas, the 100-year concession structure offers a long-duration revenue stream that could fund infrastructure repair and social programs long neglected under years of mismanagement and sanctions. Market watchers will scrutinize whether the promised $100 billion in private capital materializes on schedule and whether the at-cost off-take terms hold under shifting commodity prices.
Frequently Asked Questions
What does the deal give the United States? Washington receives 55 percent of effective output from a new private joint venture, plus a guaranteed at-cost off-take obligation, giving it majority economic control over more than 65 billion barrels of proven Venezuelan reserves.
How long do the concessions last? Rodríguez’s government has issued 100-year concessions covering the relevant oil fields, making this one of the longest-duration resource agreements in recent history.
Who negotiated the agreement? Secretary of State Marco Rubio and Secretary of War Pete Hegseth led the US-side negotiations, working with interim President Delcy Rodríguez and a private-sector partner based in Venezuela.
What is the expected economic impact? Rubio projects nearly $100 billion in private investment and thousands of high-wage jobs. The White House frames the deal as a mechanism to lower domestic fuel prices and replenish the Strategic Petroleum Reserve.
