Trump Announces Historic U.S.-Venezuela Oil Deal for Massive Reserves

President Donald Trump announced a sweeping economic and energy agreement with Venezuela on Friday, which the administration claims could grant the United States access to 65 billion barrels of untapped oil reserves at cost, according to the Associated Press.

The announcement follows nearly nine months after a U.S. military operation captured former Venezuelan President Nicolás Maduro. Trump stated on social media that the deal was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s acting President Delcy Rodríguez, calling it the biggest oil deal in world history.

Terms of the Venezuela Oil Agreement and Corporate Structure

According to a government statement from Rodríguez, the agreement involves developing 17 oil fields that hold a proven potential of 65 billion barrels of oil. The deal aims to draw $100 billion in investment into the Venezuelan oil industry while yielding over $209 billion in taxes for Caracas. Rodríguez stated on Telegram that the agreement will significantly impact the nation’s revival.

A U.S. official familiar with the details of the agreement, who spoke on the condition of anonymity, stated that the plan allows the United States to partner with an unnamed private operator in Venezuela. This partnership will establish a new private company granted 100-year rights to develop the oil fields, as reported by the Associated Press.

The framework gives the United States 55% effective output of the new private company, which includes an ownership stake and the right to purchase oil at cost. According to the same U.S. official, this entity would become the second-largest corporate holder of proven reserves globally, trailing only Saudi Aramco.

Pressure on U.S. Gas Prices and Global Energy Shifts

The agreement comes as Trump faces mounting public pressure to lower high gas prices amid ongoing conflict in the Middle East. The war in Iran reached a six-month milestone on Friday, with no resolution in sight. The conflict has severely slowed the movement of Gulf oil through the Strait of Hormuz, a critical shipping lane that previously handled roughly 20% of the world’s petroleum.

To combat rising energy costs, the U.S. has drawn down its strategic petroleum reserves, which fell below 300 million barrels in early August, marking a drop of more than 100 million barrels since the start of 2026. Data from AAA showed the average price of gas in the U.S. stood at about $4.09 a gallon on Friday, compared to $3.21 at the same time last year.

Infrastructure Challenges and Industry Caution

Despite the high-level announcement, energy experts warn that a substantial increase in Venezuelan oil production will not happen quickly. Repairing and expanding the country’s severely damaged infrastructure requires years of work and billions of dollars in capital.

Persuading major American energy corporations to return to the region presents significant hurdles due to ongoing political uncertainty and decades of neglect. Following the ouster of Maduro, Trump hosted oil executives at the White House to encourage rapid reinvestment. While executives showed interest, many expressed caution based on past losses, with ExxonMobil CEO Darren Woods describing the country as un-investable at the time, according to the Associated Press.

Trump has maintained that his administration has brought stability back to Venezuela, arguing that the country previously stole U.S. oil assets when former President Hugo Chávez nationalized foreign-owned properties decades ago. Rodríguez took early steps to alter that landscape after taking power by signing a law that opens the nation’s oil sector to privatization.