President Trump announced on Friday that his administration has reached a significant agreement with Venezuela that could potentially grant the U.S. access to extensive untapped oil reserves in the South American nation. The deal, negotiated by U.S. Secretary of State Marco Rubio, U.S. Secretary of War Pete Hegseth, and Venezuela’s interim President Delcy RodrÃguez, involves the development of 17 oil fields with a proven potential of 65 billion barrels.
According to a statement from RodrÃguez’s government, the agreement could attract $100 billion in investment to Venezuela’s oil industry and generate over $209 billion in taxes for Caracas. The deal allows for the creation of a new private company in partnership with the United States to exploit the reserves, with the company granted 100-year rights for development.
The U.S. would hold a 55 percent stake in the new company, making it the second-largest corporate holder of proven reserves globally. This announcement follows a previous military operation directed by Trump to capture then-president Nicolás Maduro of Venezuela for federal narcoterrorism and drug trafficking charges.
As U.S. gas prices continue to rise amid the ongoing conflict in Iran, Trump is under pressure to address the situation. The U.S. strategic petroleum reserves have fallen below 300 million barrels, down by over 100 million barrels since the beginning of 2026. The conflict with Iran has disrupted oil flow through the Strait of Hormuz, a critical passage for global petroleum trade.
While the agreement with Venezuela could potentially impact gas prices in the U.S., experts caution that a significant increase in oil production will take time due to the need for infrastructure repair and investment. Convincing major American oil companies to return to Venezuela may face challenges due to political uncertainties and infrastructure issues. Trump has encouraged oil executives to consider investing in Venezuela, despite some expressing reservations about the country’s investment climate.
The agreement is seen as a major opportunity for both American and Venezuelan interests, with the oil purchased from the new company intended for strategic reserves and military use in the U.S. Venezuela boasts one of the largest oil reserves globally, estimated at 303 billion barrels, yet its current oil production remains minimal due to infrastructure limitations.
