US President Donald Trump announced that the United States has entered into an agreement with Venezuela to take control of 65 billion barrels of the South American nation’s oil reserves, describing the pact on financialexpress.com as THE BIGGEST OIL DEAL IN WORLD HISTORY!
Trump Announces Agreement for US to Control 65 Billion Barrels of Venezuelan Oil
The announcement followed negotiations coordinated by Secretary of State Marco Rubio and Defence Secretary Pete Hegseth with Venezuela’s interim President Delcy Rodriguez through a partnership with private business, according to myjoyonline.com. Trump stated on thenationalnews.com that the historic transaction would more than double American oil reserves, increase oil supply, and substantially lower gas prices for Americans.
Investment, Infrastructure, and Terms of the Deal
According to statements from Venezuelan interim President Rodriguez, the agreement involves developing 17 strategic oil fields with a proven potential of 65 billion barrels, primarily located in the Orinoco Belt and Lake Maracaibo regions. The plan calls for an investment of more than $100 billion and more than $209 billion in taxes for the Venezuelan state.
Rubio noted on social media that the arrangement would bring nearly $100 billion in private investment to Venezuela, support thousands of high-paying jobs, and drive economic reconstruction. Under the venture, a US official told CBS News that the US government will retain 55% control of a joint venture with an experienced private operator, backed by a 100-year concession granted by Rodriguez to operate in the oil fields.
Context of US-Venezuela Relations and Leadership Changes
The oil agreement comes nearly nine months after a US special forces operation authorized by Trump resulted in the capture of former Venezuelan President Nicolás Maduro and his wife, Cilia Flores, in Caracas. Maduro was transported to the United States to face federal narcoterrorism and drug trafficking charges, where he remains jailed after pleading not guilty.
Following the ouster, Trump asserted that the US would run Venezuela until a safe transition could take place and indefinitely control the sale of the country’s oil. In one of her early moves after taking power, Rodriguez signed a law opening the nation’s oil sector to privatisation, reversing decades of socialist policy. Venezuela holds the largest proven crude oil reserves in the world, estimated at 303 billion barrels, accounting for roughly 17 percent of global supply.
Economic Pressures and Domestic US Gasoline Prices
The White House announcement arrives as the US faces intensified pressure over domestic inflation and high gas prices amid a six-month-old conflict involving Iran that has stymied oil supply passing through the Strait of Hormuz in the Persian Gulf. According to AAA figures cited by 1news.co.nz, the average price of gas in the US stood at about $4.09 a gallon, compared to $3.21 at the same time the previous year.
Despite the scope of the announcement, analysts and officials noted that uncertainties remain. Legal and constitutional challenges within Venezuela remain possible, and the official text of the agreement has not been published. Energy experts highlighted that Venezuelan reserves consist largely of heavy, sour oil requiring specialized refining, and cautioned that dilapidated infrastructure and political uncertainty could limit how quickly investments translate into actual production increases.
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