President Trump announced a 25‑year U.S.‑Venezuela agreement granting majority control of over 65 billion barrels of Venezuelan oil reserves, aiming to double U.S. reserves, lower gasoline prices, and revive Venezuela’s economy through a new private operator.
The agreement, announced on Truth Social Friday night, was negotiated by Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth with interim Venezuelan President Delcy Rodríguez. A new private operator received 100‑year rights to 17 strategic oilfields, targeting over 1.5 million barrels per day. The U.S. holds a 55% effective stake, including cost‑price oil purchases, while Venezuela will receive roughly $19 per barrel, projecting $209 billion in revenue at $65/barrel.
U.S. oil bought under the deal will flow to strategic reserves and the military, according to an official source, making the venture the second‑largest corporate holder of proven reserves after Saudi Aramco. Venezuela’s Delcy Rodríguez emphasized that the nation retains ownership and sovereignty over its resources, while analysts note the country’s dilapidated infrastructure will require billions of dollars and years to repair, limiting near‑term production gains.
Democrats, including Senator Chris Van Hollen, called the announcement a risk to service members and dismissed it as “not a win,” arguing the deal endangers troops while providing no benefit to U.S. consumers. The dispute centers on whether the agreement safeguards American interests or exposes personnel to danger, highlighting political division over the transaction’s strategic value.