In a social‑media post on Friday, President Donald Trump announced that the United States has entered into an agreement with Venezuela to gain control of the country’s massive oil reserves—estimated at 65 billion barrels. The deal, which the president described as “the biggest oil deal in world history,” was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s interim President Delcy Rodríguez.
Rubio later posted on X that the agreement could bring roughly $100 billion in private investment to Venezuela and help lower gas prices for American families. He called the arrangement a “huge win for both the American and Venezuelan people.”
Background and Context
The announcement follows a U.S. military operation, ordered by President Trump nine months earlier, that captured Venezuelan President Nicolás Maduro and brought him to the United States to face federal narcoterrorism and drug‑trafficking charges. Since then, the Trump administration has emphasized stabilizing Venezuela and opening its oil sector to privatization after interim President Rodríguez signed a law reversing decades of socialist nationalization.
Venezuela holds one of the world’s largest oil reserves—about 303 billion barrels, roughly 17 % of global supply—though dilapidated infrastructure limits production to about 1 % of world output. The new agreement aims to tap the known reserves, which are largely mapped, and encourage major U.S. oil firms to return to the region.
Industry Reaction
President Trump convened leading oil executives at the White House shortly after the operation that removed Maduro. While executives expressed interest, many remain cautious. Darren Woods, CEO of ExxonMobil, called Venezuela “un‑investable” at the time, citing years of damaged infrastructure and political uncertainty.
Nevertheless, the administration argues that the deal will bring stability, create jobs, and ultimately reduce the high gasoline prices Americans have been facing. The average U.S. price of gasoline stood at $4.09 per gallon on the day of the announcement, up from $3.21 a year earlier, as the nation continues to draw down its strategic petroleum reserves amid the ongoing U.S.–Israel war with Iran.
Potential Impact on American Consumers
If the agreement proceeds as outlined, the influx of Venezuelan crude could help offset the reduced flow of Gulf oil through the Strait of Hormuz, which has been constrained by the conflict with Iran. By diversifying supply sources, the administration hopes to ease pressure on domestic fuel markets and bring relief to families at the pump.
Details on the private‑sector partners involved and the exact mechanics of the deal have not yet been disclosed by the White House.
Original reporting: Texarkana Gazette — read the source article.
