US secures majority control of Venezuelan oil reserves – Trump

The Trump administration has finalized a landmark agreement granting the United States majority control over Venezuela’s vast oil reserves, a move President Donald Trump described as the “biggest oil deal in world history.” The deal, announced via Trump’s Truth Social platform, secures U.S. access to 65 billion barrels of proven Venezuelan petroleum reserves, with nearly $100 billion in private investment expected to flow into the country.

Venezuela holds the world’s largest proven oil reserves, estimated at 300 billion barrels, making it a critical player in global energy markets. The agreement follows the U.S.-backed ousting of former Venezuelan leader Nicolás Maduro in January, with interim leader Delcy Rodríguez—who remains in power under U.S. supervision—endorsing the deal as a “historic” opportunity for Venezuela’s economic revival. Rodríguez stated the agreement could generate over $100 billion in private investment and more than $209 billion in tax revenue for the Venezuelan state.

Trump credited Secretary of State Marco Rubio and Defense Secretary Pete Hegseth for brokering the agreement through private-sector partnerships. Rubio framed the deal as a strategic win under Trump’s “America First” policy, emphasizing its potential to stabilize energy supplies, lower U.S. gasoline prices, and create high-paying jobs in Venezuela. However, key details remain unclear, including the legal mechanism for transferring oil assets and how production profits will be distributed.

Energy analysts have raised concerns about the unconventional nature of the deal. Jorge Pinon, a senior researcher at the University of Texas at Austin’s Energy Institute, questioned whether the reserves would be sold, leased, or transferred only upon extraction. Reports from Axios suggested the agreement may cover a dozen productive oil fields totaling 90 billion barrels, with U.S. private companies—including American firms—developing the fields in exchange for a share of revenue.

The deal comes at a pivotal time for U.S. energy security, as America’s strategic petroleum reserves hit a 40-year low. High gasoline prices have become a political liability for Trump ahead of November’s midterm elections, compounded by disruptions from the U.S.-led conflict with Iran. Chevron, the only U.S. oil company still operating in Venezuela post-Maduro, has already boosted production to 280,000 barrels per day, with plans to increase output by 50 percent by 2028.

Energy expert John Kilduff of Again Capital highlighted the persistent risks of investing in Venezuela, citing security and political instability as major hurdles. He suggested the U.S. could establish a protected “state zone” to mitigate these risks, allowing American companies to operate without fear of expropriation.

While the full scope of the agreement remains under scrutiny, the Trump administration has framed it as a transformative step for both U.S. energy independence and Venezuela’s economic recovery.

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