Donald Trump has announced that he has reached a huge oil deal with Venezuela that would give the United States a majority share in over 65 billion barrels of the country’s reserves. In a message published on Truth Social, the US president called it “the largest oil deal in history”, which he said would double US reserves. The president explained that the agreement was reached “in close collaboration with the interim president of Venezuela, Delcy Rodrìguez”, and “through a partnership with private companies”.
Caracas has the largest proven oil reserves in the world, with over 303 billion barrels. According to data from the US Energy Information Administration (EIA), US strategic oil reserves are at their lowest level since November 1982, a consequence of government efforts to mitigate supply disruptions and rising crude prices linked to the war in the Middle East.
According to Donald Trump, “this historic transaction” between the two countries “will significantly reduce the price of gasoline for all Americans for many years to come.” The US president also states that this agreement “will not cost American taxpayers anything”.
Since the US military incursion that led to the capture of Nicolàs Maduro in early January, the US president has sought to revive the exploitation of Venezuelan oil and gas resources under his aegis.
Rubio: investments for 100 billion
Secretary of State Marco Rubio said the agreement will bring nearly $100 billion in private investment to the Latin American country. Rubio said on Rubio then said that the agreement demonstrates how “President Trump’s bold foreign policy is leading to successes in the name of America First: securing stable reserves and low-cost oil in our hemisphere and reducing gasoline prices here at home.”
The previews
News site Axios teased news of the deal on Thursday by reporting that the two countries were in talks over a dozen productive oil fields with 90 billion barrels of proven reserves, about a third of Venezuela’s total reserves of 300 billion barrels. Axios quoted two U.S. officials as saying that in exchange for a U.S. equity stake, private companies, including American firms, would develop the fields and generate more oil revenue for Venezuela. Axios also said the deal would double U.S. oil reserves at a time when they are at a 40-year low.
The Trump administration has urged US companies to invest in Venezuela, but they remain wary due to crumbling infrastructure and the Caracas government’s past misappropriation of foreign investors’ assets. Chevron, the only U.S. oil company still operating in Venezuela at the time of Maduro’s ouster, said in July that it had increased its daily crude production to 280,000 barrels and expected a 50% increase by the end of 2028.
Rodríguez: the pact with the USA is the ‘renaissance of the nation’
Venezuela’s interim president, Delcy Rodríguez, has confirmed a “historic” oil deal with the United States. The agreement, which will allow Washington to operate on potential reserves of 65 billion barrels, “will have a significant impact on the renaissance of our nation”, he highlighted. The pact comes seven months after the fall of Nicolás Maduro following an American military operation. Under US pressure, the new government has opened up to foreign investments to revive a paralyzed sector. “The development of 17 strategic fields is expected, an investment of over 100 billion dollars and more than 209 billion in tax revenues for the State,” explained Rodríguez on Telegram, thanking President Donald Trump and Secretary of State Marco Rubio. With the easing of sanctions, the country aims to restore historic extraction quotas. In July, crude oil production reached 1.2 million barrels per day, an increase of almost 30% compared to January.