U.S. Secures Landmark Oil Agreement with Venezuela

President Donald Trump announced a major agreement with Venezuela, potentially granting the U.S. access to the country’s vast untapped oil reserves. The deal, negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s acting President Delcy Rodríguez, is described as the biggest oil deal in history.

According to Rodríguez, the agreement involves the development of 17 oil fields, with a proven potential of 65 billion barrels. It could attract $100 billion in investment to Venezuela’s oil sector and generate over $209 billion in taxes for the Venezuelan government. Rodríguez predicts that this deal will significantly aid in the nation’s economic revival.

The agreement allows for a partnership with an unnamed private operator in Venezuela, forming a new company that will manage the reserves. Rodríguez has granted this company 100-year rights to develop the oil fields. The U.S. will hold a 55% effective output stake in the new company, including ownership and rights to buy oil at cost. If realized, the company would be the second largest holder of proven reserves after Saudi Aramco.

The announcement comes as Trump faces increasing pressure to address rising fuel prices amidst ongoing conflicts. The U.S. military recently captured former Venezuelan President Nicolás Maduro, adding to the regional political shifts. The war in Iran has disrupted oil flows through the Strait of Hormuz, raising U.S. gas prices to an average of $4.09 per gallon, up from $3.21 a year earlier.

While the deal may eventually impact U.S. gas prices, experts warn that a significant boost in Venezuelan oil production will take years and substantial investment. U.S. oil companies remain cautious about returning to Venezuela, citing past challenges and political instability.

Rodríguez’s administration has taken steps to privatize the oil sector, reversing policies from previous regimes. Rubio believes the agreement will bring billions in private investment to Venezuela and reduce U.S. gas prices.

The oil purchased from the new company will replenish U.S. strategic petroleum reserves and support military needs. Venezuela holds one of the largest oil reserves globally, with approximately 303 billion barrels, or 17% of the world’s supply. Despite this abundance, the country currently produces only 1% of the world’s oil due to poor infrastructure.

Former President Maduro remains detained in the U.S., facing narcoterrorism and drug trafficking charges.