Trump Unveils 65 Billion-Barrel Venezuela Oil Deal
US President Donald Trump has announced a major oil agreement with Venezuela that he says gives the United States majority control over more than 65 billion barrels of proven crude reserves. The arrangement is intended to expand US oil access, attract large-scale investment into Venezuela and help ease pressure on American fuel prices.
Trump Announces Venezuela Oil Deal
Trump said the agreement was negotiated by senior US officials in coordination with Venezuelan interim President Delcy Rodriguez and private companies.
He claimed the arrangement would more than double the volume of oil reserves effectively available to the United States and described it as the biggest oil deal in history.
However, the full legal and financial structure has not yet been publicly disclosed, including precisely how US control over the reserves will operate.
US to Gain Majority Share in Oil Venture
The agreement is expected to cover 17 strategic oilfields in the Orinoco Belt and Lake Maracaibo regions.
US officials say a new venture would give Washington an effective 55% share of production, combining an ownership interest with guaranteed purchases of crude at cost.
The projects could involve long-term operating concessions and are expected to attract more than $100 billion in private investment.
Rodriguez said the projects could generate approximately $209 billion in tax revenue for Venezuela while creating jobs and rebuilding the country’s ageing oil infrastructure.
Venezuela Oil Could Boost US Energy Supply
Venezuela possesses the world’s largest proven crude reserves but currently produces only a fraction of its potential after years of underinvestment, sanctions and infrastructure deterioration.
Washington hopes increased Venezuelan production will provide additional crude for US refineries and help replenish the Strategic Petroleum Reserve.
Analysts caution that substantial production increases could take years and that questions remain over the agreement’s compatibility with Venezuelan energy laws and constitutional provisions.
