WASHINGTON — President Donald Trump announced on Friday that the United States has entered into an agreement with Venezuela to take control of 65 billion barrels of the South American country’s oil reserves. In a social media post, Trump described the arrangement as "THE BIGGEST OIL DEAL IN WORLD HISTORY," stating it was negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth alongside Venezuela’s interim President Delcy Rodriguez.
Context of Rising Energy Costs
The announcement comes as the U.S. faces mounting pressure to address high gas prices, which stood at an average of $4.09 a gallon on Friday according to AAA data. This represents a significant increase from the $3.21 average recorded during the same period last year. The White House did not immediately respond to requests for comment regarding specific private sector partners involved in the deal or how the arrangement would functionally operate.
Strategic Reserves and Regional Conflict
The push for this agreement coincides with a dramatic slowdown of Gulf oil moving through the Strait of Hormuz, a critical chokepoint that previously handled about 20% of world petroleum. This disruption is linked to the ongoing U.S.-Israel conflict in Iran, which has now reached its six-month milestone without conclusion. Consequently, the U.S. Strategic Petroleum Reserve fell below 300 million barrels in early August, dropping by more than 100 million barrels since the start of 2026.
Challenges for Oil Industry Return
Persuading major American oil companies to return to Venezuela may face significant headwinds due to regional unrest and decades of damaged infrastructure. Following the ouster of President Nicolás Maduro nearly nine months ago, Trump gathered oil executives at the White House urging them to re-enter the market. While some expressed interest, others remained cautious; Darren Woods, CEO of ExxonMobil, previously described Venezuela as "un-investable." Despite this, Trump has argued that his administration has brought stability and claimed that previous Venezuelan leadership stole U.S. oil assets through nationalization, more context in Oil Prices Surge as Trump Demands Saudi.
Global Reserve Significance
Venezuela holds one of the largest known crude oil reserves in the world, estimated at 303 billion barrels according to the U.S. Energy Information Administration, representing approximately 17% of global supply. Unlike other regions requiring extensive exploration for untapped resources, these reserves are largely mapped and known. However, due to dilapidated infrastructure, Venezuela currently produces only about 1% of the world’s oil. The Venezuelan government’s press office did not immediately respond to a request for comment on Friday.
