President Donald Trump has announced a sweeping agreement with Venezuela that grants the United States access to significant untapped oil reserves. Negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuelan acting President Delcy Rodriguez, the deal involves developing 17 fields with a proven potential of 65 billion barrels. The agreement establishes a new private company, in which the U.S. holds a 55% stake, providing rights to purchase oil at cost and 100-year development access.
Venezuelan officials stated the deal could attract $100 billion in investment and generate over $209 billion in tax revenue for Caracas. The oil acquired through this partnership is intended to replenish the U.S. strategic petroleum reserve and support military requirements. This development follows the privatization of Venezuela's oil sector under the current administration, marking a shift from the policies of the previous government.
Despite the scale of the agreement, experts caution that immediate impacts on U.S. gas prices are unlikely due to the extensive time and capital required to repair Venezuela's dilapidated oil infrastructure. While the administration views the deal as a move toward energy stability, major oil companies have previously expressed caution regarding the region's political and operational risks. The announcement comes as the U.S. faces ongoing pressure from rising fuel costs amid global supply disruptions.
