'Biggest Oil Deal' with Venezuela Could Dramatically Boost US Reserves
President Trump heralded a massive oil agreement with Venezuela this weekend, calling it on Truth Social, “THE BIGGEST OIL DEAL IN WORLD HISTORY."
He elaborated, "I am pleased to announce that the Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil, to the United States of America. This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!"
Trump said the agreement was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and acting Venezuelan President Delcy Rodríguez.
The Associated Press reports that the United States government and an unnamed private operator in Venezuela formed a company that received the rights to untapped oil fields for 100 years.
A statement from Rodríguez indicated that the agreement specifies the development of 17 fields with a proven potential of 65 billion barrels. It said the agreement could draw $100 billion in investment into Venezuela’s oil industry and yield over $209 billion in taxes for Caracas.
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Speaking on Saturday at a site that was heavily damaged in the recent Venezuelan earthquakes, which left thousands homeless, Rodriguez declared that oil would “cease to be an inert, cold statistic and will instead become concrete solutions. Housing is one of them.”
"What we are doing is for the development of the country, but above all, to serve the Venezuelan people, to provide them with more jobs, better wages, and access to public services such as water, electricity, hospitals, schools and adequate food,” she said.
President Trump posted that the deal will "substantially lower Gas Prices for all Americans, long into the future." However, analysts caution that because of disrepair in Venezuela's oil infrastructure, short-term relief from the deal is not likely. Trump is counting on progress in the Strait of Hormuz to be a driving factor in lowering prices in 2026.
