Trump announces major US oil deal with Venezuela

Published: 29 August 2026 .The English Chronicle Desk. The English Chronicle Online.
US President Donald Trump has announced a new oil agreement with Venezuela that he says will give the United States majority control over more than 65 billion barrels of proven Venezuelan oil reserves, in a move that could significantly reshape the economic relationship between Washington and Caracas.

Trump announced the agreement on Friday, describing it as a major arrangement reached through a partnership with private businesses. He credited Secretary of State Marco Rubio and Defense Secretary Pete Hegseth with helping broker the deal. However, the US president did not provide detailed information about the companies involved, the specific oilfields covered by the agreement or the precise mechanism through which American interests would obtain majority control.

In a statement on his social-media platform, Trump said the United States had secured majority control of more than 65 billion barrels of proven oil reserves in Venezuela without cost to American taxpayers. He said the agreement would more than double the country’s oil reserves and described the arrangement as a major benefit for both Americans and Venezuelans.

The announcement immediately placed Venezuela’s enormous petroleum resources at the centre of renewed attention in Washington. Venezuela possesses an estimated 303 billion barrels of proven crude oil reserves, the largest such reserve base in the world. Much of that resource, however, has remained difficult to exploit because of years of economic deterioration, sanctions, underinvestment, ageing infrastructure and declining production capacity.

The newly announced agreement could therefore become one of the most consequential elements of the Trump administration’s Venezuela policy if the claims about majority control translate into direct American participation in the country’s oil industry.

Rubio also welcomed the agreement, calling it a major victory for both countries. His comments reinforced the administration’s argument that increased American involvement could help revive Venezuela’s damaged energy sector while providing the United States with access to additional crude supplies.

Yet significant questions remain unanswered. Trump’s announcement did not specify whether the United States government itself would hold the majority interest or whether American private energy companies would obtain controlling stakes in individual oilfields. It also remains unclear how ownership, production revenues, investment responsibilities and operational control would be divided between Venezuelan authorities and American companies.

The uncertainty is particularly important because Venezuela’s oil industry remains central to the country’s economy. Production has recovered from some of its lowest levels but remains far below the country’s historical capacity. Venezuela currently produces about 1.25 million barrels of crude oil per day, according to the information cited in reports surrounding the agreement.

For Washington, access to Venezuelan crude could have several strategic advantages. US refineries, particularly those designed to process heavier grades of crude, could benefit from a more reliable supply of Venezuelan oil. Increased Venezuelan production could also contribute to global supply and potentially put downward pressure on crude prices.

The issue has become politically significant in the United States as gasoline prices have risen ahead of November’s midterm elections. The Trump administration has been under pressure to address energy costs affecting American households and businesses. Greater access to Venezuelan crude, combined with increased production, could offer the administration another way of attempting to ease those pressures.

The United States is also seeking ways to rebuild its Strategic Petroleum Reserve, the country’s emergency crude-oil stockpile. Officials have considered several approaches to replenishing the reserve, including potential crude-oil swaps involving American producers. A closer relationship with Venezuela could provide Washington with additional flexibility in managing its broader energy-security strategy.

The latest agreement follows reports earlier this week that the Trump administration had been negotiating directly with Venezuela over American participation in a large number of oilfields. Those reports indicated that Washington was considering stakes in more than a dozen fields containing a substantial portion of Venezuela’s proven reserves.

Other reports suggested that negotiations were focused on some of the country’s most promising oil and gas assets, potentially involving fields containing tens of billions of barrels of proven reserves. The reports fuelled speculation that the administration was preparing a major restructuring of American involvement in Venezuela’s energy industry.

The developments have nevertheless generated unease among sections of Venezuela’s political opposition. Some opposition figures have criticised Washington for concentrating heavily on economic and energy interests while failing, in their view, to deliver the broader political transformation they had expected following the removal of former president Nicolás Maduro.

Trump’s Venezuela policy has already represented a dramatic shift in the relationship between the two countries. Since Maduro was removed from power in January, Washington has sought to establish a more stable political and economic environment while securing access to Venezuelan crude and encouraging American investment in the country’s deteriorated energy infrastructure.

For supporters of the new agreement, American investment could provide Venezuela with much-needed capital, technology and expertise. Decades of underinvestment have left significant portions of the country’s petroleum infrastructure in poor condition. Increased foreign investment could potentially raise production, modernise facilities and create new employment and economic opportunities.

Critics, however, are likely to question whether such a large American stake would give Washington excessive influence over Venezuela’s natural resources. The scale of the reported reserves means that even a partial restructuring of ownership could have significant consequences for Venezuela’s sovereignty and future economic policy.

The agreement also raises questions about how the Venezuelan interim government will manage relations between American investors, domestic institutions and other international energy companies. The country’s oil industry has historically been dominated by state-controlled operations, making any substantial shift towards American private-sector control politically sensitive.

The timing of the announcement is also notable. American energy companies, including Chevron, are reportedly expected to announce major investments in Venezuelan oilfields in the coming days. If those agreements materialise, they could provide some of the first concrete details about how the broader arrangement announced by Trump will work in practice.

For now, the US president’s announcement offers a broad outline rather than a complete agreement. The absence of publicly available details means that the financial structure, legal arrangements, ownership percentages and operational responsibilities remain uncertain.

What is clear is that the Trump administration is placing Venezuela’s enormous oil reserves at the centre of its strategy towards Caracas. The combination of American investment, Venezuelan crude production and US control of major energy assets could transform the two countries’ economic relationship.

If the agreement results in substantial new investment and increased Venezuelan production, it could also influence global oil markets. Venezuela’s reserves are vast, although bringing them fully into production would require enormous capital investment, infrastructure upgrades and long-term political stability.

The coming weeks are therefore likely to reveal whether Trump’s announcement represents the beginning of a comprehensive American takeover of major Venezuelan energy interests or a broader framework under which US companies will invest alongside Venezuelan partners.

Until the detailed terms are released, the precise meaning of the claim that the United States will have “majority” control remains unclear. Nevertheless, the announcement signals that Washington intends to pursue an increasingly direct role in Venezuela’s oil industry, making the country’s enormous petroleum reserves a central component of the Trump administration’s economic, energy and geopolitical strategy.