US President Donald Trump has announced what he described as a major oil agreement between the United States and Venezuela, claiming the deal will give the US access to 65 billion barrels of Venezuela’s oil reserves. The announcement was made in a social media post on Friday.
Trump said the agreement was negotiated by US Secretary of State Marco Rubio, Defence Secretary Pete Hegseth and Venezuela’s interim President Delcy Rodriguez. He described it in his post as “THE BIGGEST OIL DEAL IN WORLD HISTORY!”
The Venezuelan government had not immediately responded to requests for comment, according to the source material.
Trump Links Deal To US Energy Pressures
The announcement comes as the United States faces higher fuel costs amid disruption in global oil markets. The source material says the conflict involving Iran has slowed oil flows through the Strait of Hormuz, a key route that previously carried about 20% of global petroleum shipments.
US gas prices were also reported at around $4.09 per gallon on Friday, compared with $3.21 during the same period last year, according to AAA data cited in the report.
The United States has also been drawing down its strategic petroleum reserves, which had fallen below 300 million barrels in early August, according to the supplied report.
Deal Could Bring $100 Billion In Private Investment
Marco Rubio separately highlighted the potential economic impact of the agreement, saying it could bring $100 billion in private investment into Venezuela and contribute to lower fuel prices in the US.
“This deal is a huge win for both the American and Venezuelan people,” Rubio posted.
Trump’s post also suggested that the arrangement would involve private-sector participation. However, details about which companies would participate and how the proposed partnership would operate were not immediately provided.
Venezuela Has World’s Largest Oil Reserves
Venezuela holds an estimated 303 billion barrels of crude oil, equivalent to around 17% of global oil reserves, according to figures from the US Energy Information Administration cited in the source.
Much of Venezuela’s oil resource is already mapped, meaning exploration is not the country’s only challenge. Instead, ageing and damaged infrastructure has severely limited production capacity. The country currently produces only about 1% of global oil output, according to the supplied report.
American Oil Companies Could Face Challenges
Trump’s administration has been encouraging major US oil companies to return to Venezuela. After Maduro’s removal, Trump reportedly met oil executives at the White House and urged them to move back into the country.
However, companies have previously expressed concerns about investing in Venezuela because of its damaged infrastructure and past operating conditions. ExxonMobil CEO Darren Woods had described the country as “un-investable” at the time, according to the supplied report.
Venezuela’s interim government has also moved towards opening the country’s oil sector to private investment, with Rodriguez signing legislation aimed at allowing greater privatisation.
The proposed agreement could therefore mark a significant shift in Venezuela’s oil industry, but the precise structure of the deal, participating companies and implementation timeline remain unclear based on the information available in the supplied material.
