Trump Announces Massive US-Venezuela Oil Deal to Revive Energy Sector and Lower Gas Prices

An oil tanker anchored in Puerto Cabello, Venezuela has become the focal point of a major geopolitical shift as President Donald Trump announced that the United States has struck a historic deal with Caracas. The agreement grants the US control of roughly 65 billion barrels of Venezuela’s proven oil reserves while aiming to revitalize the OPEC nation’s struggling energy industry.

Writing on Truth Social, President Donald Trump stated that the transaction more than doubles American oil reserves and will significantly reduce gas prices for all Americans. According to the announcement, Secretary of State Marco Rubio and Secretary of War Pete Hegseth worked alongside Interim President of Venezuela Delcy Rodriguez and private businesses to secure majority US control over the oil reserves at no cost to American taxpayers.

Interim President Delcy Rodriguez welcomed the arrangement, which is anticipated to inject approximately $209bn into the state treasury. The announcement comes after weeks of negotiations regarding a pact that grants American companies long-term access to select Venezuelan oilfields while guaranteeing crude supplies for the United States.

Venezuelan officials are currently preparing to sign formal agreements granting new exploration and production rights to various companies, particularly US firms. Although sources previously indicated to Reuters that a lease model involving auctions to US producers was under consideration, the arrangement could encounter legal and constitutional hurdles within Venezuela, where the state maintains authority over core oil activities.

This initiative marks a significant expansion of Washington's involvement in Venezuela’s oil sector. Despite holding the largest proven oil reserves globally, Venezuela currently produces a mere 1.25 million barrels per day due to prolonged underinvestment, mismanagement, and sanctions.

While President Donald Trump omitted specific details regarding the agreement's structure, the exact fields, participating companies, and the mechanism for US majority control, Secretary of State Marco Rubio emphasized on X that the deal is mutually beneficial. Rubio noted that the partnership will secure stable, low-cost oil for the United States, attract nearly $100bn in private investment for Venezuela, create numerous high-paying jobs, and aid in the reconstruction of the Venezuelan economy.