Washington — President Trump announced today that his administration has reached an agreement with the government of Venezuela to develop 17 oil fields with a proven potential of 65 billion barrels. The deal, which the president highlighted on social media as “the biggest oil deal in world history,” would allow a U.S.‑backed private company to partner with an unnamed Venezuelan operator and receive a 55% effective output share, including ownership and the right to purchase oil at cost.
Key Terms of the Agreement
According to a statement from Venezuela’s acting president, Delcy Rodríguez, the partnership grants the private company a 100‑year lease to develop the fields. The agreement is projected to draw roughly $100 billion in investment into Venezuela’s oil sector and generate more than $209 billion in tax revenue for Caracas.
The U.S. side of the deal was negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, who both emphasized the strategic importance of securing reliable energy supplies amid ongoing geopolitical tensions.
Strategic Context
The announcement comes as the United States confronts high gasoline prices and a protracted conflict involving Iran and Israel that has disrupted Gulf oil flows through the Strait of Hormuz. The war has reduced the volume of petroleum transiting the strait, which previously handled about 20 % of the world’s oil supply. Domestic strategic petroleum reserves have fallen below 300 million barrels, a drop of more than 100 million barrels since the start of 2026.
While the average U.S. gasoline price sits at $4.09 per gallon, experts caution that any immediate impact on pump prices is unlikely. They note that bringing Venezuelan production up to capacity will require extensive infrastructure repairs and new capital investments that could take years to materialize.
Economic and Fiscal Implications
If the projected investment and tax revenues materialize, the deal could provide a significant boost to both the Venezuelan economy and U.S. energy security. The private company would become the second‑largest holder of proven oil reserves worldwide, trailing only Saudi Aramco.
Rodríguez expressed optimism on Telegram, stating the agreement would have a “significant impact on our nation’s revival.” The administration framed the partnership as a win‑win: expanding U.S. access to critical energy resources while supporting Venezuela’s economic recovery.
Next Steps
The agreement still requires detailed implementation plans, including the selection of the private operator and the establishment of the joint venture’s governance structure. Both governments indicated that they will work closely with industry experts to ensure the project adheres to environmental standards and respects the rights of local communities.
President Trump reiterated his commitment to lowering energy costs for American families, linking the deal to broader efforts to reduce gasoline prices and strengthen national energy independence.
Original reporting: Alabama News Network — read the source article.
