U.S. President Donald Trump announced on Friday a substantial agreement with Venezuela that could potentially grant the U.S. access to significant untapped oil reserves in the South American nation at a favorable cost. The deal, described by Trump as the “biggest oil deal in world history,” was reportedly brokered by U.S. Secretary of State Marco Rubio, U.S. Secretary of War Pete Hegseth, and Venezuela’s interim President Delcy Rodríguez.
According to a statement from Rodríguez’s government, the agreement involves the development of 17 fields holding an estimated 65 billion barrels of oil. The deal is expected to attract around $100 billion in U.S. investments into Venezuela’s oil industry and generate over $209 billion in tax revenue for Caracas. Rodríguez expressed optimism about the agreement, foreseeing a significant positive impact on Venezuela’s economic recovery.
Under the terms of the agreement, the United States will collaborate with an undisclosed private operator in Venezuela to establish a new private company tasked with overseeing the oil reserves. The U.S. official, speaking on condition of anonymity, revealed that the company would be granted 100-year rights for the development of the oil fields.
The deal grants the United States a 55% share in the effective output of the new private company, including ownership rights and the option to purchase oil at cost. The company is expected to become the second-largest corporate holder of proven reserves globally, following Saudi Aramco.
The announcement of this agreement comes following a military operation authorized by Trump almost nine months ago, aimed at apprehending Venezuela’s former President Nicolás Maduro and bringing him to the U.S. to face charges related to narcoterrorism and drug trafficking.
With the ongoing conflict in Iran impacting global oil markets, Trump is facing mounting pressure to address rising gas prices in the U.S. The nation has tapped into its strategic petroleum reserves, which have decreased by over 100 million barrels since the beginning of 2026, falling below 300 million barrels. The oil flow through the Strait of Hormuz has been impeded due to the U.S.-Israel conflict with Iran, affecting global oil supply.
Gas prices in the U.S. have surged, reaching an average of $4.09 per gallon, up from $3.21 per gallon a year ago, as reported by AAA. While the agreement with Venezuela may eventually lead to a decrease in gas prices, experts caution that significant oil production recovery in Venezuela will be a time-consuming process requiring substantial investments and infrastructure improvements.
Trump’s push for American oil companies to re-enter Venezuela has been met with cautious interest from industry executives. Despite past challenges in the region, Trump remains optimistic about stabilizing Venezuela and utilizing its oil resources to benefit both American and Venezuelan citizens.
The agreement stipulates that the oil purchased from the new company will be used to replenish the U.S. strategic petroleum reserve and for military purposes. Venezuela holds one of the largest oil reserves globally, estimated at 303 billion barrels, representing about 17% of the world’s oil supply. Although the reserves are well-known, Venezuela’s oil production has been limited due to infrastructure challenges, resulting in the country contributing only 1% to global oil production.
