The Trump administration announced it has secured majority control of over 65 billion barrels of Venezuela's proven oil reserves through a partnership with private companies, marking a significant shift in U.S. involvement in Venezuela's energy sector.
President Donald Trump announced on Friday that the United States has obtained majority control of more than 65 billion barrels of Venezuela's proven oil reserves at no cost to American taxpayers. According to Trump, the arrangement was negotiated by Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth in partnership with private business interests and Venezuelan officials. The deal follows weeks of negotiations aimed at granting American companies long-term access to Venezuelan oilfields and securing crude supplies for U.S. refineries.
The Trump administration has framed the agreement as mutually beneficial. Secretary Rubio stated the arrangement would provide stable, low-cost oil to the United States while potentially lowering gasoline prices domestically. For Venezuela, the administration claims the deal could attract nearly $100 billion in private investment, create thousands of jobs, and support economic recovery. Trump did not disclose specific details about the agreement's structure, the fields involved, or the companies participating.
However, significant questions remain about the deal's legal foundation and practical feasibility. David Goldwyn, president of Goldwyn Global Strategies, raised concerns about whether a U.S. government lease has constitutional basis under Venezuela's laws, noting there is no precedent for such an arrangement. Analysts have also questioned whether the agreement adequately addresses longstanding obstacles to Venezuelan oil investment, including political instability, infrastructure deficiencies, limited export capacity, and government control over the industry.
Venezuela holds the world's largest proven oil reserves but currently produces only 1.25 million barrels daily, significantly below capacity due to years of underinvestment and mismanagement. Experts suggest that developing infrastructure to produce and export Venezuelan crude could take years, potentially delaying any reduction in U.S. fuel prices.
