President Donald Trump announced on Friday that the United States has entered into a major agreement with Venezuela, securing majority control of more than 65 billion barrels of the country's proven oil reserves, which he described as 'THE BIGGEST OIL DEAL IN WORLD HISTORY' [1][2]. Trump stated that the deal was brokered through Secretary of State Marco Rubio, Secretary of War Pete Hegseth, Venezuela's interim president Delcy Rodriguez, and private business, emphasizing that it was achieved 'at no cost to the American Taxpayer' [1][2].
According to Trump, this transaction 'MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future' [1][2]. Secretary of State Marco Rubio echoed these sentiments, calling the agreement a 'huge win' for both countries and highlighting that it would secure 'stable reserves and low-cost oil' in the Western Hemisphere while lowering U.S. gas prices [1][2]. Rubio further stated that the deal would bring nearly $100 billion in private investment to Venezuela, support thousands of high-paying jobs, and help rebuild the country's economy [1][2].
NBC News provided additional context, noting that Venezuela possesses an estimated 303 billion barrels of crude oil, about 17% of the world's supply, according to the U.S. Energy Information Administration [2]. However, due to dilapidated infrastructure, Venezuela currently produces only about 1% of the world's oil [2]. NBC News also referenced a recent U.S. military operation in January to capture Venezuela’s President Nicolás Maduro, who faces federal narcoterrorism and drug trafficking charges in the U.S. [2]. The announcement comes amid rising gas prices in the U.S., attributed to the ongoing war with Iran, which began six months ago on February 28, and as Trump faces increasing pressure ahead of the midterm elections [2].
Both sources emphasize that this is a developing story and further updates are expected [1][2].
CONCLUSION
The U.S.-Venezuela oil deal, as announced by President Trump, represents a significant shift in global oil dynamics, with the U.S. securing majority control over 65 billion barrels of Venezuelan reserves. The agreement is expected to double American oil reserves and potentially lower gas prices, while also promising substantial investment and economic support for Venezuela. Market implications are likely to be high, pending further details and developments.