U.S. Announces Landmark Deal to Oversee Venezuelan Oil Reserves
President Trump revealed an agreement with Venezuela to take control of 65 billion barrels of the country's oil reserves, calling it the largest oil deal in history. The move comes as U.S. gas prices remain high and strategic petroleum reserves have fallen below 300 million barrels. Venezuela holds an estimated 303 billion barrels, but produces only about 1% of global supply due to outdated infrastructure.
The agreement covers roughly one-fifth of Venezuela's estimated 303 billion barrels of proven crude, a resource base that represents about 17 percent of global supply. Venezuela's production capacity remains severely constrained by decades of underinvestment and deteriorating infrastructure, limiting output to roughly one percent of worldwide supply despite its vast reserves.
The announcement follows the January capture of Nicolás Maduro by U.S. military forces and his transfer to face narcoterrorism charges. The deal was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela's interim President Delcy Rodriguez. It arrives as U.S. strategic petroleum reserves have dropped below 300 million barrels, down over 100 million barrels since early 2026.
This deal could reshape global energy markets and U.S. fuel prices, potentially easing pressure on American consumers who have faced sustained high costs at the pump. It may also signal a broader shift in how the U.S. secures energy resources through direct geopolitical intervention, with implications for international relations and the sovereignty of resource-rich nations. The arrangement's success will likely depend on whether Venezuela's damaged infrastructure can be restored quickly enough to meaningfully boost supply.