US President Donald Trump has announced what he described as the “biggest oil deal in world history”, saying the United States has secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves.
Trump announced the agreement on Friday, saying it was negotiated by US Secretary of State Marco Rubio, Defence Secretary Pete Hegseth and Venezuelan interim President Delcy Rodríguez. He said the arrangement was reached through a partnership with private businesses and would come at no cost to American taxpayers.
The agreement is expected to give US companies a major role in developing Venezuelan oil fields. According to reports, the plan could involve a new public-private structure under which American companies would operate and invest in selected oil fields. Trump has said the deal will help increase US oil supplies, replenish strategic reserves and ultimately bring down fuel prices for American consumers.
Venezuela holds the world’s largest proven crude oil reserves, estimated at around 303 billion barrels. However, years of underinvestment, poor infrastructure, sanctions and mismanagement have severely weakened its oil industry. The country currently produces only a small fraction of global oil output despite its enormous reserves.
Venezuelan interim President Delcy Rodríguez welcomed the agreement, describing it as an important step towards rebuilding the country’s economy and energy sector. Venezuelan officials have projected that the arrangement could attract around $100 billion in private investment and generate more than $209 billion in tax revenue for the government.
The announcement comes at a crucial time for the United States. American fuel prices remain elevated, while the country’s Strategic Petroleum Reserve has fallen significantly during 2026. The ongoing conflict involving Iran has also disrupted global oil flows and added pressure to energy markets.
Despite the scale of the announcement, several details of the agreement remain unclear, including its precise legal structure, the companies involved and how quickly additional Venezuelan oil could reach international markets. Analysts also point to Venezuela’s ageing infrastructure and the long-term challenges of restoring production.
Still, the deal marks a major shift in US-Venezuela energy relations and could reshape the global oil market if the promised investment and production increases materialise.
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