Trump Announced the "Largest in History" Oil Deal with Venezuela

The U.S. and Venezuela have agreed to a deal that will give the U.S. government a large stake in Venezuela’s oil reserves, President Donald Trump announced on his Truth Social page. According to him, the U.S. has gained control of the reserves in partnership with the private sector. He specified that this involves more than 65 billion barrels and called the agreement the largest in world history.

"This historic deal MORE THAN DOUBLES U.S. oil reserves, significantly increases our oil reserves, and will substantially lower gas prices for all Americans for many years to come, while helping Venezuela move toward tremendous success and prosperity,” the post reads.

Bloomberg previously reported that, according to its sources, one of the options under discussion involved leasing several fields for a period of 100 years.

Gaining access to Venezuela's large oil reserves would allow the U.S. to increase its available oil supply during a period of high market volatility caused by the war in Iran and restrictions on shipping through the Strait of Hormuz, the agency notes.

Chevron and other producers are preparing to sign new deals. But although the country has some of the world’s largest oil reserves, companies will have to contend with dilapidated infrastructure, unreliable power supplies, and other long-standing problems, according to Bloomberg. Since President Nicolás Maduro was ousted in January, oil production in Venezuela has already risen by nearly 300,000 barrels per day, according to the agency’s data. However, a recovery to approximately 3 million barrels per day—the level at which production once stood—could take more than ten years, according to estimates by industry experts.

The U.S. government’s acquisition of a direct stake in Venezuelan projects illustrates just how much the industry is changing during Venezuela’s political transition. Major international oil companies are generally cautious about the country, while independent producers and investors willing to take on greater risk are actively entering the market, which many consider the industry’s biggest opportunity since the collapse of the Soviet Union, Bloomberg noted.

A few hours before Trump’s announcement, the agency reported, citing sources, that the U.S. could acquire a stake in Venezuela’s reserves through a partnership between the Department of Defense and Alejandro Betancur — a controversial investor in the energy sector who has become a key intermediary between the two countries.

This article was AI-translated and verified by a human editor