President Donald Trump said the United States has entered an agreement giving it majority control of more than 65 billion barrels of proven oil reserves in Venezuela, an announcement he made on social media Friday and described as the biggest oil deal in world history.
Trump said the deal would substantially lower gasoline prices for Americans and that it was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuela's acting president, Delcy Rodriguez, the Associated Press reported.
Rodriguez's government described the arrangement in more concrete terms. Her statement said it covers the development of 17 fields with a proven potential of 65 billion barrels, could draw $100 billion in investment into Venezuela's oil industry and could yield more than $209 billion in taxes for Caracas.
The mechanics matter here. A U.S. official who was not authorized to speak publicly said Washington will partner with an unnamed private operator to create a new company, and that Rodriguez granted it 100-year rights to develop the fields. The United States would hold 55% of effective output, including an ownership stake and the right to buy oil at cost, with American purchases going to the strategic reserve and the military, PBS NewsHour reported.
None of that produces cheaper fuel quickly. Most of Venezuela's proven reserves sit in the Orinoco Belt as extra-heavy crude, which needs years of capital spending and specialized upgrading before it reaches a refinery.
The timing is political as much as commercial. The announcement came as the war with Iran reached its six-month mark, with pump prices above $4 a gallon and U.S. consumer confidence at its lowest level in seven months, according to PBS NewsHour. It also follows the U.S.-led removal of Nicolas Maduro in January, which produced the interim government that signed the agreement.
Venezuela has been in economic crisis for years and is still recovering from two earthquakes in June that killed more than 6,000 people, ABC News reported. NPR reported that Rodriguez, writing on Telegram, predicted the deal would have a significant effect on her country's revival.