Trump announces new US oil agreement with Venezuela

Donald Trump announced Friday a new oil agreement between the United States and Venezuela, signed with the country's interim president, Delcy Rodríguez. According to Trump, the US will secure majority control over more than 65 billion barrels of proven oil reserves.

Writing on his social media platform, Trump said the deal was brokered through a partnership with private business by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth. He said the arrangement gives the US majority control of the reserves at no cost to American taxpayers, and that it would more than double US oil reserves. Rubio described the deal as a major win for both the American and Venezuelan people.

Trump did not disclose details on the structure of the agreement, which fields or companies are involved, or how exactly the US would exercise majority control. Venezuela holds an estimated 303 billion barrels of proven oil reserves, the largest in the world.

Background

Since the US captured and removed former Venezuelan president Nicolás Maduro from power in January, Washington has sought to secure a steady flow of Venezuelan crude for US refineries while encouraging American investment in the country's deteriorated energy sector, which currently produces 1.25 million barrels of oil per day. Trump faces pressure ahead of November's midterm elections over rising gasoline prices, which cheaper oil supplies could help ease. The US has also been seeking ways to replenish its strategic petroleum reserve.

Earlier this week, the Wall Street Journal reported the administration was in advanced talks for the US to take a direct stake in more than a dozen oilfields holding roughly a third of Venezuela's reserves. News of the negotiations sparked anger among members of Venezuela's opposition, with one figure describing the deal as a land grab and accusing the US of acting in a rapacious manner. Chevron and other US energy companies are expected to sign a deal next week to invest billions in Venezuela's oil fields.