US ‘takes control’ of Venezuela’s oil: what impact will it have?

The United States has reached a major agreement to take control of Venezuela’s vast oil resources. Washington is set to gain majority control over more than 65 billion barrels of oil reserves.

The initiative was taken by US President Donald Trump. It has brought US Venezuela relations into renewed focus.

Why was the agreement reached? And what is its real objective?

Trump said Friday local time that the United States had reached an agreement with the government of Venezuela’s interim President Delcy Rodriguez. Under the agreement, the United States will gain majority control over more than 65 billion barrels of Venezuela’s oil reserves.

The agreement also covers 17 strategic oil fields in Venezuela. The US government said it will partner with a private company to extract the oil. However, the specific terms of the agreement have not yet been made public.

In a post on social media, Donald Trump described the agreement as the “largest oil deal in the history of the world” and expressed his enthusiasm.

The 65 billion barrels covered by the agreement represent about one fifth of Venezuela’s oil reserves. According to US government estimates from 2023, Venezuela has 303 billion barrels of oil reserves. It has the world’s largest oil reserves. About 17 percent of the world’s total oil resources are also located in the South American country.

However, several analysts have questioned Trump’s figure of 65 billion barrels. There are doubts about the figure because the specific terms of the agreement have not been disclosed.

Some believe Trump made the announcement in larger terms to boost the US economy.

The 65-billion-barrel number is not very important in terms of the actual deal. The really important parts of the deal are still unknown. (Oil market researcher Rory Johnston)

Oil market researcher Rory Johnston said the 65-billion-barrel figure is not very important in terms of the actual deal. The really important parts of the agreement are still unknown.

How will it affect US oil supplies?

Trump has claimed that the agreement will more than double US oil reserves. However, according to US government figures, the country’s oil reserves had fallen to about 46 billion barrels by the end of 2024.

The United States’ Strategic Petroleum Reserve has also declined. The emergency stockpile currently holds 289.7 million barrels of oil. Its storage capacity is about 714 million barrels.

Trump claims the agreement with Venezuela will help rebuild US oil reserves. The country’s oil reserves are now at their lowest level since 1982.

How did this situation develop?

Relations between Venezuela and the United States underwent a major change in 2026. Nicolas Maduro had led Venezuela since 2013. His administration has faced criticism over disputed elections and allegations of repression against political opponents.

Trump and Maduro had been engaged in a long running dispute. Trump accused Maduro of sending drug traffickers to the United States. Maduro accused Trump of interfering in Venezuela’s domestic politics.

The dispute reached a peak on January 3 this year. The United States had deployed military ships off the Venezuelan coast for several weeks. Trump then ordered the abduction of the Venezuelan president. US troops later took him away.

Maduro is now awaiting trial in New York on drug and weapons related charges.

Following the operation Trump backed Maduro’s former vice president Delcy Rodriguez as Venezuela’s head of government. She was sworn in a few days later.

The Trump administration then announced that Washington would take control of Venezuela’s oil exports indefinitely.

Why does the United States claim Venezuela’s oil?

Experts have criticized US intervention in Venezuela as illegal under international law. Despite this, the Trump administration’s claim over Venezuela’s oil resources has become one of the main bases for its intervention in the country.

Before the January 3 operation this year Trump and his allies claimed that the United States had rights to Venezuela’s oil resources because of its long history of oil exploration in the country.

The Trump administration has also criticized the Venezuelan government’s efforts to nationalize oil resources belonging to private companies.

Last December Trump announced a blockade around Venezuela to stop the sale of the country’s biggest export product, oil. At the time he accused Venezuela of stealing US oil fields.

However, under international law every state has permanent sovereign rights over its natural resources. This right ensures protection of resources from unwanted exploitation by foreign powers.

Why announce the agreement now?

The agreement was announced as the war involving the United States and Israel against Iran reached its six-month mark.

After the war began on February 28 Iran closed the Strait of Hormuz to commercial shipping. Before the war about one fifth of the world’s total oil and natural gas supplies were transported through this waterway.

The closure of the Strait of Hormuz pushed up oil prices in global markets. The impact has also been felt in the United States. Midterm elections are scheduled to be held in the country in November.

The American Automobile Association said gasoline prices in the United States could reach a record high this August. US consumers are currently paying more than $4 per gallon on average.

The dispute over the Strait of Hormuz is still continuing. The war has also not ended. Ongoing military operations have put pressure on US oil supplies.

How does the Trump administration view the agreement?

The Trump administration has presented the new agreement with Venezuela as positive for the US economy. Trump is also presenting Venezuela as a model for future US relations with other rival states such as Iran.

At a rally in Las Vegas this month Trump said the United States was taking large amounts of oil from Venezuela and had developed good relations with the country. He also claimed that oil taken from Venezuela had been used to pay for the war conducted against the country.

Announcing the agreement Friday Trump said it would increase oil supplies in the United States. He also claimed that it would significantly lower fuel prices for American citizens.

The cost of living could become a major issue in this year’s US midterm elections.

US Secretary of State Marco Rubio also presented the agreement as a success of Trump’s “America First” policy. He said:

This agreement will ensure stable oil reserves and lower priced energy in the Western Hemisphere. At the same time it will help lower energy prices in the United States.

What is Rodriguez’s reaction?

Venezuela’s interim President Delcy Rodriguez has also presented the agreement as a success for her government.

In a message on Telegram, she described the agreement as “historic.” She said it would have an important impact on the country’s economic recovery.

Rodriguez said the agreement would create major opportunities for investment in developing and rebuilding Venezuela’s hydrocarbon industry infrastructure.

Venezuela has been suffering from an economic crisis for years. The country has faced shortages of essential goods and rising inflation. Since 2014 about 8 million Venezuelans have left the country due to political repression and economic crisis.

Critics have identified government corruption, mismanagement of state industries and poor management of the oil and mineral sectors as some of the main causes of the country’s economic crisis. At the same time the impact of strict US sanctions on Venezuela’s economy is also considered an important factor.

After taking office as interim president Rodriguez has taken steps to increase private investment in various industries under pressure from the Trump administration.

According to her government’s estimates Venezuela could receive $209 billion in tax revenue and $100 billion in investment from Friday’s agreement.

How long will the agreement last?

The Rodriguez government has given the United States the right to use the country’s oil resources for 100 years.

However, the agreement has also faced criticism. The United States has a long history of intervention in Latin America. Critics also oppose Trump’s policy of establishing US dominance in the Western Hemisphere.

Some have viewed Friday’s agreement as an attempt to seize Venezuela’s natural resources. They say it resembles the seizure of resources by Western powers during the colonial era.

Energy analyst Gregory Brew compared reports of a possible agreement before the deal to British imperial efforts to seize oil resources in the early 20th century. He said such an event was unprecedented.

Trump himself has referred to the colonial era concept of “Manifest Destiny.” His plans have also included expanding US resources and territory.

Will the Venezuela model be applied to other countries?

Trump has spoken about the possibility of making claims over oil resources in other parts of the world as well.

Long before becoming president in 2011, he said the United States should use military power to extract oil from other countries.

Regarding US military intervention in Libya Trump said at the time that he would have taken the oil. He made similar comments the same year regarding the invasion of Iraq.

During his second term as president Trump has expressed a similar attitude toward Iran. In a post on social media in April he wrote about opening the Strait of Hormuz to take its oil and make huge amounts of money from it. He even proposed turning the Strait of Hormuz into US territory.

Source: Al Jazeera (Adapted)