The United States has secured majority control over more than 65 billion barrels of Venezuela’s proven oil reserves under a new Venezuela oil deal announced by President Donald Trump. The agreement, unveiled on Friday, 28 August, could significantly reshape energy ties between Washington and Caracas, although important legal, financial and operational details have yet to be made public.
The arrangement covers 17 strategic oil fields and is expected to involve a new public-private venture in which the US government would control the majority of effective production. However, consumers should not expect an immediate fall in petrol prices because Venezuela’s ageing oil infrastructure will require substantial investment before production can rise sharply.
Trump described the agreement as the “biggest oil deal in world history”, saying it would give Washington majority control over more than 65 billion barrels of proven reserves without direct cost to American taxpayers.
The volume involved is larger than the United States’ own estimated proved crude oil reserves and represents roughly a fifth of Venezuela’s vast reserves. Venezuela is widely regarded as holding the largest proven oil reserves in the world, estimated at about 303 billion barrels.
Questions remain over 100-year oil rights
Reports, including the original Telegraph account, said oil rights connected with the arrangement could run for as long as 100 years, with the US taking a majority position in a company holding long-term contracts covering Venezuelan oil fields.
However, a fresh statement from Venezuelan interim President Delcy Rodríguez on Sunday said the wider energy agreement with Washington would last 25 years, rather than 100. The different timeframes appear to refer to separate parts of the arrangement — the broader energy agreement on one hand and individual oil-field rights or contracts on the other — but full contractual documents have not yet been published.
That distinction is important because describing the US as simply “owning Venezuela’s oil for 100 years” could overstate what has so far been confirmed publicly.
Rodríguez has maintained that Venezuela retains sovereignty over its natural resources while arguing that the agreement will bring badly needed investment into the country’s oil industry. Her government estimates that the programme could attract more than $100 billion in investment and generate about $209 billion in revenue for Venezuela.
Delcy Rodríguez became Venezuela’s acting president after the removal of Nicolás Maduro, a development that marked a major change in relations between Caracas and Washington.
Trump promises lower fuel prices
Trump has presented the agreement as part of his effort to increase available oil supplies and bring down energy costs for Americans.
He said access to the Venezuelan reserves would more than double the amount of oil counted among US reserves and claimed the agreement would help reduce petrol prices. But energy experts have warned that much of Venezuela’s crude is heavy oil that requires specialised facilities, while years of underinvestment, sanctions and deteriorating infrastructure mean significant new production could take years.
The announcement comes as energy prices remain politically sensitive in the United States ahead of the November midterm elections.
The deal also follows months of growing American involvement in Venezuela’s energy sector. New Daily Prime previously reported that Washington had moved to take control of sanctioned Venezuelan oil sales after Maduro was removed from power.
Washington said at the time that greater control over Venezuelan oil revenue would help stabilise the country and prevent funds from being diverted, while critics argued that the policy gave the US excessive influence over another country’s natural resources.
Maduro removal changed US-Venezuela relations
The latest agreement cannot be separated from the dramatic political changes in Venezuela earlier this year.
New Daily Prime has documented how US-Venezuela relations deteriorated under Trump before Maduro’s capture. Maduro was taken to the United States in January following a US military operation and is facing criminal charges in New York, allegations he has denied.
Washington subsequently developed a working relationship with Rodríguez’s interim administration and pushed for greater US access to Venezuela’s energy industry.
Despite Trump’s claims about the scale and benefits of the latest deal, questions remain over financing, the legal structure of US involvement, Venezuela’s constitutional control of its resources and how quickly private energy companies will commit billions of dollars.
For now, the agreement represents a major expansion of US involvement in Venezuela’s oil sector, but its long-term economic impact — and whether it delivers the lower energy prices promised by Trump — will depend on investment, production growth and the final contractual terms.
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