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Donald Trump, the President of the United States, announced that the US has struck a deal with Venezuela to control more than 65 billion barrels of its proven oil reserves. Trump stated that the agreement would more than double American oil reserves and "substantially lower gas prices for all Americans." Venezuela's interim President Delcy Rodríguez welcomed the deal, claiming it would aid her nation's economic revival.
However, some analysts have expressed skepticism about whether the deal will address the long-standing obstacles that have deterred investment in Venezuela's oil industry. Trump has been under domestic pressure to reduce petrol prices, which have surged due to the ongoing Iran war. He vowed to tap into Venezuela's reserves after the US captured its then-President Nicolás Maduro in January, ostensibly to stand trial on drug charges in New York.
US Secretary of State Marco Rubio described the oil deal as "a huge win for both the American and Venezuelan people." Although few details were released, he claimed the deal would bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela's economy. Trump noted that Rubio and Defense Secretary Pete Hegseth reached the agreement through a partnership with private business, but did not elaborate on the specifics of the partnership or the commitments involved.
Under the deal, the US government will retain 55% control of a joint venture with an "experienced private operator in Venezuela." Reports indicate that US energy firms Chevron and Halliburton are nearing deals to invest billions in overhauling the infrastructure in Venezuela's oil fields, many of which have not been developed. David Goldwyn, president of energy consultancy Goldwyn Global Strategies, stated that there is "no precedent" for the US government entering into a lease to operate Venezuelan oil fields, raising questions about potential violations of Venezuela's constitution or hydrocarbons law.
Rodríguez stated that the agreement would have "a significant impact on our nation's revival," involving the development of 17 strategic oil fields and an investment of over $100 billion. However, analysts caution that it remains uncertain whether these reserves will translate into actual investment and how long it will take to produce results. The deal appears to grant the US direct governance over a foreign country's sovereign resources, a situation that could face legal challenges in Venezuela. Despite having the largest proven oil reserves in the world, Venezuela's production has plummeted due to various factors, including US sanctions and mismanagement of its state-run oil firm.