US President Donald Trump has announced today an agreement with Venezuela that would give the United States majority control over more than 65 billion barrels of the country's proven oil reserves, describing it as the “biggest oil deal in world history”.
Trump said the agreement, reached through a partnership involving private businesses, would more than double US oil reserves and substantially lower gasoline prices for American consumers. He also said the arrangement would come at no cost to US taxpayers.
The deal is expected to bring significant private investment into Venezuela's oil industry, which has suffered from years of underinvestment, sanctions and deteriorating infrastructure. Venezuela holds the world's largest proven oil reserves, estimated at about 303 billion barrels, but its production has remained far below its potential because of the condition of its oilfields and infrastructure.
The agreement covers 17 oil fields containing about 65 billion barrels of proven reserves. US and private-sector investment is expected to help restore production capacity, modernise ageing infrastructure and increase the flow of Venezuelan crude to international markets, including the United States.
Trump has made lower energy prices a key economic priority as American consumers face elevated fuel costs. He argued that greater access to Venezuelan crude would strengthen US energy security and increase supplies, eventually putting downward pressure on gasoline prices.
However, the impact on US fuel prices is unlikely to be immediate. Venezuela's oil industry requires extensive investment and infrastructure upgrades before production can be substantially increased. Analysts have also raised questions about the precise financial and legal structure of the agreement and how quickly the planned investments can translate into additional crude supplies.
For Venezuela, the agreement offers a potential route to revive its oil industry and attract large-scale foreign investment. Venezuelan officials have indicated that the arrangement could bring close to $100 billion in investment and generate substantial government revenue as production expands.
The agreement marks a major change in the role of US companies in Venezuela's energy sector and could reshape the country's position in global oil markets. It also gives Washington greater access to one of the world's largest concentrations of crude reserves at a time when the United States is seeking to strengthen energy supplies.
Trump said the agreement was negotiated by US Secretary of State Marco Rubio and Secretary of War Pete Hegseth in cooperation with Venezuelan interim President Delcy Rodriguez. While the administration has presented the deal as a major economic and energy breakthrough, its ultimate impact will depend on the implementation of the agreement, the scale of investment and the speed at which Venezuela's oil production can be restored.
