U.S. Government Takes Majority Stake in Venezuelan Oil Venture, Gaining Access to Massive Reserves
The Trump administration has reached an agreement to control 55% of a new joint venture that holds rights to 65 billion barrels of Venezuelan oil, making it the world's second-largest corporate holder of proven reserves after Saudi Aramco. The deal, based on a 100-year lease granted by Venezuela's interim president, is projected to attract over $100 billion in investment and deliver $209 billion to Venezuela's government. This marks another instance of the U.S. federal government acquiring equity in strategic industries, following earlier stakes in Intel, MP Materials, and other firms.
The agreement grants the U.S. federal government a 55% controlling interest in a new joint venture holding a 100-year lease on prime Venezuelan oil fields. With rights to 65 billion barrels, the entity would rank as the world's second-largest corporate holder of proven reserves, trailing only Saudi Aramco. The deal follows a pattern of recent federal equity positions in Intel, MP Materials, and Trilogy Metals.
Venezuela's oil infrastructure has deteriorated sharply, with production at 1.1 million barrels daily versus a 3.5 million peak two decades ago. The Strategic Petroleum Reserve stands at 289.7 million barrels, its lowest since 1982. Reviving output would require billions in investment and years of work, with Chevron, Halliburton, and Eni reportedly exploring expanded operations.
This arrangement could reshape how the U.S. government participates in global energy markets, potentially affecting taxpayers who would bear investment risks alongside any revenue gains. Energy consumers may see price effects if Venezuelan output increases, while geopolitical tensions could complicate the venture's longevity. The deal may also influence how other nations view U.S. foreign policy toward resource-rich countries, with long-term consequences for international investment patterns and diplomatic relationships.