US President Donald Trump announced a new agreement with Venezuela’s interim president, granting the US majority control of 65bn barrels of proven oil reserves, according to his social media posts.
On Friday, President Donald Trump announced a new US oil agreement with Venezuela’s interim president, Delcy Rodríguez, stating the US will have “majority” control of 65bn barrels of proven oil reserves. The agreement, brokered by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, involves private business partnerships and claims no cost to American taxpayers. Details on the structure, fields, or companies involved remain unclear.
Venezuela holds the world’s largest proven oil reserves at 303bn barrels. The US aims to secure stable oil supplies for refineries and boost American investment in Venezuela’s energy sector, which currently produces 1.25m barrels per day of crude. The administration has emphasized that the deal would more than double American oil reserves and benefit both nations. However, the terms of the agreement and how the US will exercise majority control over the reserves have not been fully disclosed. The announcement has sparked mixed reactions, with some Venezuelan opposition figures criticizing the deal as a “land grab.”
Why it matters
This move may influence oil prices and US energy strategy ahead of midterms.
This section reflects Dumpling editorial interpretation and is provided for context only.
What to watch
Watch whether US officials confirm terms of the oil agreement with Venezuela.
This section reflects Dumpling editorial interpretation and is provided for context only.