WASHINGTON: US President Donald Trump has announced a major agreement giving the United States control over more than 65 billion barrels of Venezuela’s proven oil reserves, describing the deal as a major step toward increasing American energy supplies and reducing fuel prices.
Trump said the agreement would more than double the United States’ oil reserves and could “substantially lower gas prices” for American consumers. The announcement comes as the US faces continued pressure over elevated petrol prices following disruptions linked to the conflict with Iran.
Venezuela has the world’s largest proven oil reserves, making the agreement potentially significant for global energy markets. However, details of the arrangement remain limited, and analysts have raised questions about how quickly Venezuela’s vast reserves could be developed.
Venezuela’s interim President Delcy Rodríguez welcomed the agreement, saying it could help support the country’s economic recovery and attract investment into an industry that has suffered from years of underinvestment, sanctions and operational difficulties.
US Secretary of State Marco Rubio described the agreement as “a huge win for both the American and Venezuelan people.” He said the deal could generate almost $100 billion in private investment, create thousands of well-paid jobs and support the reconstruction of Venezuela’s economy.
Despite the optimistic claims, energy analysts have expressed scepticism about the potential impact of the agreement. Venezuela possesses enormous oil reserves, but transforming those reserves into significantly higher production would require major investment, modern infrastructure and improvements to the country’s energy sector.
The Venezuelan oil industry has faced significant challenges for years. Production has been affected by deteriorating infrastructure, shortages of investment and technical difficulties, while international sanctions have also complicated the ability of companies to operate in the country.
Analysts therefore question whether simply gaining access to Venezuela’s reserves will immediately increase US oil supplies or bring down fuel prices. Developing some of the country’s heavy crude resources can be technically complex and expensive, requiring specialised facilities and significant capital.
Trump has increasingly focused on Venezuela’s oil reserves as he faces domestic pressure to reduce fuel prices. Petrol costs have risen sharply amid disruptions to global energy markets associated with the Iran conflict, increasing political pressure on the administration to find additional sources of crude oil.
The announcement follows Trump’s dramatic intervention in Venezuela earlier this year, when US forces captured then-President Nicolás Maduro, who was subsequently taken to the United States to face drug-related charges.
Trump had previously vowed to make greater use of Venezuela’s vast oil resources, arguing that increased production could help strengthen US energy security and lower costs for American consumers.
The latest agreement could therefore represent a significant shift in the relationship between Washington and Caracas. For Venezuela, increased foreign investment could provide much-needed capital for rebuilding its oil industry and broader economy.
For the United States, access to Venezuela’s enormous reserves could potentially expand long-term energy supplies. However, the immediate effect on American petrol prices remains uncertain.
Much will depend on the final terms of the agreement, the amount of investment that materialises and how quickly Venezuela can restore and expand oil production.
With few details of the deal publicly released so far, questions remain over ownership, investment commitments, production targets and the timeline for developing Venezuela’s reserves.
The agreement has nevertheless placed Venezuela’s oil wealth at the centre of US energy policy and could have far-reaching implications for the global oil market if the promised investment and production increases materialise.
