President Donald Trump on Friday announced an unprecedented US push to take control of a fifth of Venezuela's vast oil reserves, betting that American companies can revive the Opec nation's battered energy industry while delivering a new source of crude to help bring down US fuel prices. Trump provided few details about the agreement, saying only that the US had secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with private business. The South American nation's leader welcomed the agreement, saying it would boost the economy and government revenue. The new deal would represent a dramatic expansion of the US role in Venezuela's oil industry as the Trump administration seeks to revive the country's production and secure more crude for US refineries. Venezuela holds the world's largest proven oil reserves but produces only about 1.25 million barrels per day, far below its potential after years of underinvestment, mismanagement and sanctions.
"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 US control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer," Trump wrote on Truth Social. The announcement followed weeks of US-Venezuelan negotiations over a deal that would give American companies long-term access to a group of Venezuelan oilfields and guarantee the resulting crude supply to the United States. Venezuelan officials are preparing to sign agreements next week granting new oil exploration and production rights to a number of companies, particularly US firms.
A list seen by Rubio described the agreement as a win for both countries, saying on X that it would secure stable, low-cost oil for the United States and help lower gasoline prices. For Venezuela, Rubio said the deal would bring nearly $100 billion in private investment, support thousands of high-paying jobs and help rebuild the country's economy. Rodriguez, who became interim leader after the US seized President Nicolas Maduro in January, said late on Friday that the agreement would allow for a significant increase in production through the development of 17 strategic fields and result in tax revenue for the country totaling $209 billion.
Analysts said they needed to see more details on the agreement's legal and financial structure before assessing whether it could attract significant investment. Also unclear is whether the deal will lower gasoline prices in the short term, as developing the infrastructure needed to produce, transport and refine Venezuela's heavy crude could take years. David Goldwyn, president of Goldwyn Global Strategies, said it was unclear whether a US government lease would have a legal basis under Venezuela's constitution and its new hydrocarbons law, adding that there is no precedent for having the US government enter into a lease.