President Donald Trump announced a major oil agreement with Venezuela that he said gives the United States majority control over more than 65 billion barrels of the country’s oil reserves.
Trump called the agreement “the biggest oil deal in world history” in a Truth Social post. He said the United States secured the oil at no cost to American taxpayers.
“This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans,” Trump wrote. He said the agreement would also strengthen relations between the United States and Venezuela.
Trump said Sunday that oil obtained through the agreement will also be used to refill the Strategic Petroleum Reserve. He said the process would begin “very shortly” and described the oil as a “Gift from Venezuela to the People of the United States.”
The U.S. emergency oil stockpile has fallen sharply in recent years. It held about 289 million barrels during the week ending Aug. 21, down from 656 million barrels in July 2020, according to Energy Information Administration figures.
The Trump administration released 172 million barrels from the reserve in March after the war with Iran disrupted global oil supplies. Iranian attacks on commercial tankers traveling through the Strait of Hormuz contributed to the disruption. About one-fifth of the world’s traded oil normally passes through the waterway.
Venezuelan acting leader Delcy Rodríguez said the new U.S. agreement covers the development of 17 oil fields with proven potential totaling 65 billion barrels. She said the figure applies specifically to the bilateral deal with the United States.
Rodríguez said Venezuela’s broader energy plans also involve major companies including Chevron, Repsol, Eni, Shell, and BP. She predicted the U.S. agreement would have “a significant impact on our nation’s revival.”
Trump credited Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, Rodríguez, and private businesses with helping negotiate the agreement.
The deal comes as the administration faces pressure over higher fuel costs. The national average for gasoline stood at about $4.07 per gallon Sunday, compared with $3.19 at the same time last year, according to AAA figures.
The agreement follows months of negotiations aimed at giving U.S. companies long-term access to Venezuelan oilfields. Under the arrangement described by the Washington Examiner, resulting crude supplies would be directed toward the United States. Venezuela would benefit from private investment and additional oil revenue.
Venezuela is estimated to hold roughly 300 billion barrels of oil, the largest reserves in the world. Its energy industry has struggled for years with declining production and limited investment.
The Trump administration has expanded U.S. involvement in Venezuela’s oil sector since American forces captured Nicolás Maduro in January. Days later, the United States completed its first sale of Venezuelan oil, valued at $500 million, and officials said the sales would continue indefinitely.
Trump has said rebuilding Venezuela’s oil production could expand supplies and help keep energy prices lower. Energy Secretary Chris Wright has said Venezuelan crude would be allowed to flow to U.S. refineries and other markets, with sales handled by the U.S. government.