US President Donald Trump announced a deal with Venezuela granting the United States majority control over 65 billion barrels of the country’s oil reserves, a fifth of its proven reserves, aimed at bolstering U.S. energy security amid a 40-year low in the strategic petroleum reserve.
The agreement, brokered by U.S. Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s interim President Delcy Rodriguez, involves a public-private partnership with American oil companies to develop 17 strategic fields, with Venezuela projecting $100 billion in private investment and $209 billion in tax revenue.
The deal seeks to revitalize Venezuela’s oil industry, which produces only 1.25 million barrels daily despite holding the world’s largest proven reserves, by addressing infrastructure decay and sanctions that have long hindered production.
Legal and constitutional challenges in Venezuela remain unresolved, as the U.S. government’s role in leasing oil fields lacks precedent under the nation’s hydrocarbons law, and analysts question whether the plan will overcome persistent investment barriers or deliver short-term fuel price relief.