Trump Announces US Control of Venezuela’s Vast Oil Reserves to Lower Fuel Prices

According to Reuters, on Friday Trump offered limited information regarding the accord, noting solely that through a collaboration with private industry, the U.S. had attained majority oversight of upwards of 65 billion barrels of Venezuela’s certified petroleum deposits. Weeks of talks preceded Friday’s announcement concerning a pact that would grant American firms long-term entry to multiple Venezuelan oilfields while securing the resulting petroleum flow for the United States. In the coming week, Venezuelan authorities plan to execute pacts providing fresh exploration and drilling privileges to several entities, with a particular focus on American corporations.

Official Reactions and Planned Production Targets

Writing on Truth Social, Trump detailed the command structure behind the arrangement. At his direction, Secretary of State Marco Rubio and Secretary of War Pete Hegseth worked closely with Interim President of Venezuela Delcy Rodriguez through a partnership with private business to secure the reserves at no cost to the American taxpayer.

Rubio described the agreement on X as a win for both countries, stating it would secure stable, low-cost oil for the United States, help lower gasoline prices, and bring nearly $100 billion in private investment to Venezuela while supporting thousands of high-paying jobs, according to Reuters. Meanwhile, Rodriguez stated late Friday that the agreement would allow for a significant increase in production through the development of 17 strategic fields, resulting in tax revenue for the country totaling $209 billion.

Delcy Rodriguez

Market Context and Infrastructure Challenges

Venezuela holds the world’s largest proven oil reserves, sitting on 303 billion barrels of crude according to the U.S. Energy Information Administration (EIA), yet the country produces only about 1.25 million barrels per day due to years of underinvestment, mismanagement, and international sanctions, as noted by Reuters. A list reviewed by Reuters shows the targeted oilfields are located in the Orinoco Belt and Lake Maracaibo regions.

Industry analysts emphasized the need for more details on the agreement’s legal and financial structure before determining if it can attract significant investment. Speaking to Reuters, Goldwyn Global Strategies president David Goldwyn remarked that the legitimacy of a U.S. government lease under Venezuela’s constitutional framework and updated hydrocarbons legislation remains ambiguous, pointing out that no historical precedent exists for the United States government undertaking a lease to run petroleum deposits. Goldwyn also questioned whether the plan would address long-standing obstacles such as political uncertainty, an inadequate power grid, limited export capacity, and government discretion over the industry.

Venezuelan state-owned oil and natural gas company PDVSA says its pipelines had not been updated in 50 years, and updating the infrastructure to return to peak production levels would cost $58 billion. While heavy crude is crucial for producing diesel, asphalt, and heavy machinery fuels, the Trump administration faces pressure ahead of November midterm elections to address consumer concerns over rising gasoline prices through cheaper supplies and expanded output.