A New Framework for Venezuelan Energy
On Friday, President Donald Trump disclosed a fresh petroleum arrangement between the United States and Venezuela, declaring that Washington would hold "majority" authority over 65 billion barrels of the South American nation's proven oil reserves. The deal was negotiated, according to Trump, "through a partnership with private business" under the direction of Secretary of State Marco Rubio and Defense Secretary Pete Hegseth. In a post on his social-media platform, the president emphasized that the arrangement was secured "at no cost to the American Taxpayer" and claimed it would more than double the country's domestic oil reserves.
Secretary of State Rubio echoed the sentiment on social media, describing the pact as "a huge win for both the American and Venezuelan people."
Interim Venezuelan leader Delcy Rodríguez is the counterpart on the other side of the agreement, though the specific terms, the particular fields involved, the companies participating, and the precise mechanism through which the United States would exercise majority control all remain undisclosed.
Strategic and Political Drivers Behind the Deal
Venezuela sits atop an estimated 303 billion barrels of proven oil reserves, the largest such endowment on Earth. Since Washington seized and ousted former President Nicolás Maduro from power in January, US policymakers have been working to establish a reliable pipeline of Venezuelan crude to American refineries while simultaneously encouraging domestic investment in the OPEC member's aging and underperforming energy sector, which currently outputs roughly 1.25 million barrels of crude per day.
The timing of the announcement coincides with growing political pressure on Trump ahead of the November midterm elections, as soaring gasoline prices have become a salient issue. Cheaper imported oil and expanded production could help ease consumer costs at the pump. Separately, the administration has been exploring options to rebuild the Strategic Petroleum Reserve, the federal oil stockpile, including potential crude swaps with domestic producers.
The groundwork for the deal was laid in recent weeks. The Wall Street Journal reported that the Trump administration was engaged in "advanced talks" to secure a direct equity stake in more than a dozen Venezuelan oilfields containing nearly one-third of the country's vast energy reserves. Axios also covered the negotiations, citing a US official who characterized the prospective deal as "massive." The discussions reportedly centered on US participation in Venezuela's most promising oil and gas fields, which together hold approximately 90 billion barrels of proven reserves.
Opposition Backlash and Upcoming Industry Commitments
The news drew sharp criticism from figures within Venezuela's political opposition, who are already frustrated by what they see as Trump's failure to deliver meaningful democratic transformation following Maduro's removal. One prominent opposition figure, who declined to be identified due to the sensitivity of criticizing Washington, called the arrangement "a land grab – a massive land grab." The figure went on to say the move was "revolting" and that it reflected neither the United States citizens would have expected, nor "the United States of the Marshall plan," but rather "a rapacious, mafioso United States."
On the commercial front, the Wall Street Journal reported that Chevron and other American energy firms are expected to sign an investment agreement as soon as next week, committing billions of dollars toward Venezuela's oil fields.
Tom Phillips and Reuters contributed additional reporting to the story.