Trump announces US majority control of Venezuela’s oil
File photo: REUTERS
US President Donald Trump announced a major bilateral agreement between the United States and Caracas that hands majority control of around 65 billion barrels of Venezuela’s proven crude reserves to the US.
The deal aims to revitalize the struggling energy sector of the OPEC nation. Writing on Truth Social, Trump declared that the “historic transaction more than doubles American oil reserves” and “will substantially lower gas prices for all Americans.”
In his social media post, Trump detailed the administration’s collaborative effort in securing the reserves without spending federal funds.
He wrote, “At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority US control of more than 65 billion barrels of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer.”
Venezuela’s Interim President Delcy Rodriguez expressed support for the historic accord, which officials expect to inject around $209 billion into the Venezuelan state treasury.
The breakthrough followed several weeks of intense negotiations aimed at securing long-term access to local oilfields for American corporations while guaranteeing a steady flow of crude to the US.
Next week, Venezuelan authorities plan to sign formal contracts granting new rights for exploration and extraction, focusing heavily on US firms.
To structure the partnerships, negotiators considered a lease framework where the state would auction oilfields to American producers, according to reports from the Reuters news agency.
However, this specific model may spark legal and constitutional battles within Venezuela, a country whose constitution mandates state dominance over core petroleum activities.
This transaction marks a massive escalation of Washington’s influence in the South American nation’s energy landscape as the Trump administration works to boost Venezuelan output and secure feedstock for domestic refineries.
Although Venezuela possesses the largest proven oil reserves on the planet, years of underinvestment, economic sanctions, and structural mismanagement have suppressed its output to just 1.25 million barrels per day.
While announcing the milestone, Trump did not specify the operational structure of the pact, the specific fields, the participating private enterprises, or the mechanism through which the US would maintain its majority control.
Secretary of State Marco Rubio hailed the agreement on X as a mutual victory. Rubio emphasized that the arrangement will provide the US with a reliable supply of inexpensive petroleum and depress fuel costs at the pump.
For Venezuela, Rubio noted that the partnership will attract nearly $100 billion in private capital, generate thousands of well-paying employment opportunities, and help revive the country’s devastated economy.
Source: Al Jazeera (adapted)
