Trump Announces Sweeping Venezuela Oil Deal Giving U.S. Access to 65 Billion Barrels of Reserves
WASHINGTON — August 29, 2026 — President Donald Trump has announced a sweeping new energy agreement with Venezuela that could give the United States majority control over oil production tied to more than 65 billion barrels of proven Venezuelan reserves, marking a dramatic expansion of Washington’s role in the South American country’s energy industry.
Trump announced the agreement Friday, describing it as the world’s largest oil deal. According to the Associated Press, the arrangement involves a newly created company between the U.S. government and an unnamed private Venezuelan operator, with rights involving 17 untapped oil fields.
U.S. Would Hold Majority Stake
Under the arrangement described to AP, the United States would have 55% effective output from the new company through a combination of ownership and rights to purchase oil at cost.
Some of that oil could eventually be directed toward the U.S. Strategic Petroleum Reserve and the military, according to a U.S. official cited by AP.
Reuters separately reported that Trump said the United States had secured majority control involving more than 65 billion barrels of proven Venezuelan reserves through a partnership with private business.
Why Venezuela’s Oil Matters
Venezuela possesses the world’s largest proven crude-oil reserves, but its actual production remains far below its potential following years of underinvestment, deteriorating infrastructure, sanctions and economic turmoil.
Reuters reported that Venezuela is currently producing roughly 1.25 million barrels per day. The Trump administration hopes American involvement and investment could eventually revive production and provide another source of crude for U.S. refiners.
The timing is especially significant as Washington seeks additional energy supplies amid elevated oil prices and disruption associated with the continuing conflict involving Iran.
Could the Deal Lower U.S. Gas Prices?
Trump says the agreement could help reduce gasoline prices for Americans.
However, any major effect is unlikely to happen immediately.
Oil experts have warned that Venezuela’s aging and damaged energy infrastructure would require years of work and billions of dollars in investment before production from undeveloped fields could rise substantially.
That means Americans should not assume the announcement will translate into an immediate drop at the gas pump.
Venezuela Says Deal Could Bring Major Investment
Venezuela’s interim President Delcy Rodríguez has presented the agreement as an opportunity to rebuild the country’s energy industry and stimulate its economy.
According to information reported by AP, Venezuela says development of the 17 fields could attract approximately $100 billion in investment and potentially generate more than $200 billion in tax revenue for the country over time.
Reuters reports Rodríguez said Saturday that the energy agreement would remain in force for 25 years and aims to raise crude production to 1.5 million barrels per day while maintaining Venezuelan sovereignty over its natural resources.
Major Questions Remain
Despite the scale of Trump’s announcement, significant questions remain about exactly how the agreement will work.
AP reports that the White House has provided relatively little detail beyond Trump’s announcement, and the full text of the agreement has not been publicly released. Questions remain about financing, implementation, participating companies and how quickly the targeted reserves can realistically be developed.
Those uncertainties are important because controlling rights connected to oil reserves does not mean that 65 billion barrels of oil are immediately available to the United States.
Still, if implemented as described, the agreement would represent an extraordinary expansion of U.S. involvement in Venezuela’s oil sector and could have long-term consequences for U.S. energy security, Venezuela’s economy and global oil markets.
