In a bold move to strengthen American energy independence, President Donald Trump announced Friday night that the United States has entered a 100‑year partnership with an unnamed private operator in Venezuela. The deal, which the White House calls “the biggest oil deal in world history,” creates a new private company that will develop 17 oil fields with an estimated 65 billion barrels of proven reserves.
Key terms of the agreement
The joint venture grants the United States a 55% effective output share, combining an ownership stake with the right to purchase oil at cost. The oil acquired will be directed to the U.S. Strategic Petroleum Reserve and to support the military, according to an anonymous U.S. official.
Venezuelan acting president Delcy Rodríguez said the partnership could attract $100 billion in investment and generate more than $209 billion in taxes for Caracas, potentially jump‑starting the country’s struggling economy.
Negotiators and expected benefits
President Trump said the agreement was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Rodríguez. The administration frames the deal as a strategic win for American families, promising lower gasoline prices once production ramps up.
Energy experts caution that Venezuela’s oil infrastructure is in poor condition and will require substantial capital to repair. NYU’s Amy Myers Jaffe noted the deal may be “helpful in the long run” but is unlikely to affect retail gasoline prices in the near term.
Impact on U.S. consumers
Current national gasoline prices average $4.08 per gallon, up from $3.20 a year ago, according to AAA. While the administration hopes the new supply will eventually ease price pressures, analysts say the timeline for meaningful production could span several years.
Venezuelan reaction
Reactions in Venezuela are mixed. Some citizens view the agreement as a betrayal of national sovereignty, while others hope it will bring jobs and revenue to a country long plagued by economic hardship. Harvard professor Ricardo Hausmann, a former Venezuelan planning minister, called the deal “shameful” and questioned Rodríguez’s constitutional authority to bind the nation.
Unanswered questions
Several critical details remain undisclosed, including the identity of the private operator, the exact split of ownership versus purchase rights, and who will fund the necessary infrastructure upgrades. Major U.S. oil firms have not yet committed to the project, though Chevron, the only U.S. company currently operating in Venezuela, is reportedly in talks to expand its presence.
Economist David Oxley of Capital Economics suggested the deal could double U.S. oil reserves and reduce reliance on Canadian and Mexican crude, but warned that logistical hurdles and potential overestimation of reserve values could limit its impact.
What’s next?
The Trump administration will need to secure financing, repair Venezuela’s aging facilities, and persuade private oil majors to invest. If successful, the partnership could become the second‑largest corporate holder of proven oil reserves after Saudi Aramco, marking a significant shift in global energy dynamics.
Original reporting: KTBS 3 (Shreveport) — read the source article.
