Trump Says US Secures Majority Control of 65 Billion Barrels of Venezuelan Oil
WASHINGTON, UNITED STATES — WEB DESK: US President Donald Trump says Washington has reached a sweeping agreement with Venezuela that gives American interests majority control over more than 65 billion barrels of the country’s proven oil reserves, describing it as the largest oil agreement in history and predicting it will eventually increase supplies and reduce fuel prices.
Trump announced the agreement on Friday, saying it was structured through a partnership with private business and would not impose additional costs on American taxpayers. He said the arrangement would more than double the oil reserves under US-linked control.
However, the claim requires an important distinction: the United States has not physically acquired 65 billion barrels of crude oil for immediate use, nor has Venezuela transferred its entire national oil reserves to Washington.
The figure refers to proven underground reserves covered by the new development arrangement. Extracting those barrels could take decades and require massive investment in Venezuela’s deteriorated oil infrastructure.
Trump Calls It World’s Biggest Oil Deal
Trump said the agreement was negotiated with Venezuela’s interim leadership and involved senior members of his administration.
According to Trump, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth played central roles in negotiations with interim Venezuelan President Delcy Rodríguez.
Trump characterised the agreement as a historic development that would strengthen economic ties between Washington and Caracas.
Rodríguez also welcomed the agreement, saying it could support Venezuela’s economy and increase government revenue.
The full commercial and legal implications of the arrangement are still emerging, making it important to distinguish Trump’s description of the deal from oil that is already produced, transported or available to US consumers.
What Does the 65 Billion Barrel Figure Mean?
Venezuela possesses the world’s largest proven oil reserves, with more than 300 billion barrels estimated nationwide.
Trump’s figure of more than 65 billion barrels therefore represents only part of Venezuela’s total resource base.
Reuters reported that Trump provided relatively few details in his initial announcement, saying the US had obtained majority control over more than 65 billion barrels through a partnership involving private business.
The arrangement is expected to involve development of multiple Venezuelan oilfields.
This means the barrels are primarily reserves still underground, not a stockpile equivalent to the US Strategic Petroleum Reserve.
That distinction is crucial when assessing Trump’s suggestion that the agreement could quickly transform American oil supplies.
Venezuelan Oil to Help Refill US Strategic Reserve
Trump subsequently announced that oil obtained under the Venezuela arrangement would be used to help replenish the US Strategic Petroleum Reserve, or SPR.
The reserve currently holds around 290 million barrels, its lowest level in roughly 44 years, according to Reuters.
Trump said the process of replenishing the reserve would begin soon.
But the 65-billion-barrel figure should not be added directly to the SPR.
The Strategic Petroleum Reserve consists of crude oil physically stored in underground salt caverns in the United States. Venezuela’s 65 billion barrels represent recoverable reserves associated with producing fields and development rights.
In other words, 65 billion barrels of Venezuelan reserves and 290 million barrels physically stored in the SPR are fundamentally different measurements.
Venezuela Production Cannot Rise Overnight
Despite Venezuela’s extraordinary resource base, its actual oil production is only a fraction of what its underground reserves might suggest.
Years of underinvestment, sanctions, political instability, infrastructure deterioration and loss of technical capacity have weakened the country’s petroleum industry.
Reuters notes that substantial investment and infrastructure improvements would be required before Venezuela could meaningfully increase production.
That makes Trump’s prediction of substantially lower gasoline prices a longer-term proposition rather than an immediate consequence of the agreement.
Oil markets respond primarily to actual and expected production reaching the market, not simply to the size of underground reserves.
Why Venezuela’s Oil Is Difficult to Develop
Much of Venezuela’s enormous petroleum resource consists of heavy and extra-heavy crude, particularly in the Orinoco Belt.
Such crude generally requires specialised production, processing and refining infrastructure.
Venezuela’s energy sector also needs extensive rehabilitation after years of economic and operational problems.
These constraints explain why possessing hundreds of billions of barrels underground has not made Venezuela one of the world’s largest current oil producers.
The agreement could eventually help unlock additional production if sufficient capital, technology and political stability are provided, but that process could take years.
Deal Comes as Middle East War Pressures Energy Markets
The timing of the agreement is especially important because global energy markets remain under pressure from the US-Iran conflict and continuing disruption around the Strait of Hormuz.
Brent crude climbed back above $90 a barrel on Monday following renewed US-Iran military exchanges, highlighting Washington’s incentive to diversify energy supplies and strengthen strategic reserves.
The Venezuela agreement could therefore carry both economic and geopolitical significance.
For Washington, greater access to Venezuelan production could reduce vulnerability to future supply disruptions.
For Caracas, foreign investment could provide capital needed to rebuild an oil industry that remains central to the country’s economy.
Could the Deal Lower US Gasoline Prices?
Trump says the arrangement will eventually deliver substantially lower gasoline prices to American consumers.
That outcome is possible only if the agreement produces enough additional crude to materially increase global supply.
The immediate impact is much less certain.
Developing oilfields, repairing pipelines and processing facilities, attracting investors and expanding export infrastructure take time.
Oil prices are also determined by global factors including OPEC+ production, Middle East conflicts, sanctions, demand from China and other major economies, inventories and broader economic conditions.
The agreement therefore does not guarantee an immediate fall in gasoline prices.
A Major Shift in US-Venezuela Energy Relations
The deal nevertheless represents a dramatic shift in relations between Washington and Caracas.
Venezuela’s oil sector has long been at the centre of political tensions with the United States, including sanctions and disputes over foreign investment and control of petroleum assets.
The latest arrangement creates a new framework in which US interests could play a significantly greater role in developing Venezuelan resources.
Its ultimate importance will depend not simply on the headline figure of 65 billion barrels, but on how much investment is committed, how quickly production can be increased and whether the political and contractual arrangements remain stable.
For now, the most accurate description is that Trump says US-linked interests have secured majority control over development rights covering more than 65 billion barrels of Venezuelan proven reserves — not that the United States has taken possession of 65 billion barrels of ready-to-use oil.
