President Trump announced on Friday that the U.S. government has entered into an agreement to gain majority control over approximately 65 billion barrels of Venezuelan oil reserves. The deal involves the development of 17 oil fields through a new private company in which the United States will hold a 55% effective output stake, including the right to purchase oil at cost.
The agreement follows the U.S. military's capture of former Venezuelan President Nicolás Maduro earlier this year and the subsequent rise to power of acting President Delcy Rodríguez. The Trump administration has since eased energy sanctions and sought to recruit American oil companies to return to Venezuela, decades after the nationalization of assets under former President Hugo Chávez led many firms to exit the country.
According to a U.S. official, Rodríguez granted a 100-year concession to a joint venture between the U.S. government and an unnamed private operator. The Rodríguez government estimated the deal could attract $100 billion in private investment and generate $209 billion in tax revenue for Caracas. Secretary of State Marco Rubio and Defense Secretary Pete Hegseth helped negotiate the transaction, which the president stated would be executed at no cost to American taxpayers.
Democratic lawmakers questioned the motivations and safety implications of the agreement. Sen. Chris Van Hollen (D-MD) stated on social media that the deal suggests the administration put service members at risk for "private profit." Sen. Tim Kaine (D-VA) expressed concern that the deal would benefit "Big Oil companies" and delay a transition to clean energy. Conversely, Sen. Bernie Moreno (R-OH) defended the transaction, stating it would benefit both nations for generations and prevent Venezuelan oil from being sold to China.
The scale of the deal is significant, involving 21% of Venezuela's proven reserves and a projected $100 billion in investment. However, the concrete day-to-day change for American drivers will not be immediate. Energy experts noted that repairing Venezuela's dilapidated infrastructure will require years and billions of dollars before production can significantly increase. The U.S. Strategic Petroleum Reserve, which fell below 300 million barrels in early August, is intended to be a primary recipient of the new oil supply.
The transaction sets a precedent for direct U.S. government ownership in foreign oil production through private partnerships. The knock-on effects include a potential shift in global energy security as the U.S. seeks to bypass the Strait of Hormuz, where 20% of world petroleum previously passed before the Iran conflict. What happens next depends on the participation of private firms; while Hunt Oil Company recently signed a deal, ExxonMobil CEO Darren Woods previously characterized the country as "uninvestable" due to historical asset seizures. No specific start date for extraction under this new 100-year concession was reported.