President Donald Trump says the United States has reached an agreement with Venezuela that would give American interests majority control over more than 65 billion barrels of the country’s proven oil reserves, in what he described as the “biggest oil deal in world history.”
Trump announced the agreement on August 28, saying it was negotiated by U.S. Secretary of State Marco Rubio and Secretary of War Pete Hegseth in cooperation with Venezuelan Interim President Delcy Rodríguez and private companies. He said the arrangement would come at no cost to American taxpayers.
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The agreement reportedly covers 17 oil fields with a combined proven potential of about 65 billion barrels. Venezuelan authorities said the project could attract approximately US$100 billion in private investment and generate more than US$209 billion in tax revenue for the country.
The proposed arrangement would involve the United States partnering with a private operator to establish a new company responsible for developing the reserves. However, important details about the structure of the agreement, including how U.S. control would be exercised and which companies would participate, have not yet been fully disclosed.
Venezuela possesses the world’s largest proven crude oil reserves, estimated at roughly 303 billion barrels. Despite its enormous petroleum resources, years of political instability, sanctions, underinvestment and deteriorating infrastructure have contributed to a sharp decline in the country’s ability to produce and export oil.
Trump said the agreement is intended to revive Venezuela’s struggling energy sector while increasing oil supplies available to the United States. The administration has also linked the initiative to efforts to strengthen U.S. energy security and reduce gasoline prices.
Rodríguez’s government has welcomed the arrangement, saying the investment could help rebuild Venezuela’s petroleum industry and generate substantial revenue for the country. The Venezuelan side has described the agreement as part of a broader effort to revive the national economy.
The announcement nevertheless represents a major shift in the relationship between Washington and Caracas. Venezuela’s oil industry has historically been dominated by the state-owned PDVSA, while foreign companies have faced significant restrictions and political uncertainty.
Analysts have questioned how quickly the proposed investment could translate into higher production, noting that Venezuela’s heavy crude requires extensive infrastructure, technology and capital. Reviving mature and damaged oil fields could take years, even with substantial investment.
The agreement also has broader geopolitical implications. Control and development of Venezuela’s oil reserves could strengthen U.S. influence over one of the world’s most significant energy resources while reducing the role of other international players that have historically invested in or purchased Venezuelan crude.
For Venezuela, the potential influx of investment and government revenue could provide an important source of funding for economic recovery. For the United States, the deal could provide greater access to Venezuelan crude and potentially strengthen domestic energy supplies.
The full economic and political impact of the agreement, however, will depend on how the proposed partnership is implemented and whether the investment can overcome the longstanding challenges facing Venezuela’s oil sector.
