Washington: US President Donald Trump has announced what he described as the “biggest oil deal in world history,” claiming the United States has secured majority control over more than 65 billion barrels of proven crude oil reserves in Venezuela.
Trump said the arrangement was reached under the direction of Secretary of State Marco Rubio and Secretary of War Pete Hegseth, in cooperation with Venezuelan interim President Delcy Rodriguez and private-sector companies.
According to Trump, the agreement will not require funding from American taxpayers. He also claimed that bringing the additional Venezuelan resources into the US energy equation could eventually help lower gasoline prices for American consumers.
Trump Says US Oil Reserves Could More Than Double
The US president presented the agreement as a major development for America’s energy security.
Trump said access to Venezuela’s proven reserves would substantially increase the amount of oil available to the United States and could help ease fuel costs over the longer term. He also argued that investment in Venezuela’s energy industry could contribute to the country’s economic recovery.
The announcement marks a significant development in Washington’s relationship with Caracas, particularly following years of political confrontation and sanctions.
Venezuela Sits on World’s Largest Oil Reserves
Venezuela possesses an enormous crude oil resource base, although production has remained far below its potential.
US Energy Information Administration data has previously estimated Venezuela’s proved crude oil reserves at around 303 billion barrels, representing roughly 17% of global proved reserves.
Despite those vast resources, Venezuela accounts for only a small share of worldwide oil production. Years of underinvestment, deteriorating infrastructure and other challenges have constrained output.
Deal Follows Major Shift in US-Venezuela Relations
The announcement comes after a dramatic transformation in US policy towards Venezuela.
Trump’s administration has maintained strong pressure on Caracas while seeking greater control over Venezuelan oil exports and encouraging the return of American energy companies to the country.
Trump had previously argued that US companies should regain access to Venezuelan energy assets that were nationalised during the government of former Venezuelan President Hugo Chávez.
Gas Prices and Strategic Reserves Add Pressure
The new oil announcement also comes at a sensitive time for the US energy market.
American consumers have faced concerns over gasoline prices, while the country’s Strategic Petroleum Reserve has fallen substantially from levels seen at the beginning of the year.
Trump has repeatedly emphasised the importance of increasing domestic energy supplies and reducing pressure on consumers at the pump.
Questions Remain Over Implementation
While Trump has described the agreement in sweeping terms, the practical details of how the reported US majority control would operate have not yet been fully outlined.
Issues including ownership arrangements, investment commitments, production targets, sanctions policy and the legal framework governing Venezuelan oil operations are expected to determine the deal’s real impact.
For now, the announcement represents a major claim by the Trump administration that Venezuelan crude could become an increasingly important component of America’s long-term energy strategy, while simultaneously helping Caracas revive an oil industry that has struggled for years.
