President Donald Trump on Friday announced an unprecedented U.S. push to take control of a fifth of Venezuela’s vast oil reserves, betting that American companies can revive the OPEC nation’s battered energy industry while delivering a new source of crude to help bring down U.S. fuel prices.
Trump provided few details about the agreement, saying only that the U.S. had secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through a partnership with private business.
“At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer,” Trump wrote on Truth Social.
The announcement comes after weeks of U.S.-Venezuelan negotiations over a deal that would give American companies long-term access to a group of Venezuelan oilfields and guarantee the resulting crude supply to the United States.
Sources previously told Reuters that a lease model was under consideration, with fields potentially auctioned to U.S. producers, but the arrangement could face legal and constitutional challenges in Venezuela, where the state retains control over core oil industry activities.
The deal would represent a dramatic expansion of the U.S. role in Venezuela’s oil industry as the Trump administration seeks to revive the country’s deteriorated production and secure more crude for U.S. refineries. Venezuela holds the world’s largest proven oil reserves but produces only about 1.25 million barrels per day, far below its potential after years of underinvestment, mismanagement and sanctions.
Trump’s announcement provided few details on the structure of the agreement, the fields or companies involved, or how the United States would exercise majority control over the reserves.
Since the U.S. captured and removed former President Nicolas Maduro from power in January, Washington has been trying to secure a stable flow of Venezuelan crude for U.S. refineries while promoting American investment in the country’s oil industry.
The Trump administration is under pressure ahead of midterm elections scheduled later this year over rising gasoline prices, which could be eased through cheaper oil supplies and expanded output. The U.S. also has been looking for solutions to replenish its Strategic Petroleum Reserve, the oil stockpile, including the possibility of crude swaps with U.S. producers.
(Reporting by Jarrett Renshaw, Costas Pitas and Christian Martinez; Editing by Jasper Ward, Caitlin Webber and Rosalba O’Brien)