President Donald Trump announced Friday that the United States has reached an agreement with Venezuela securing majority U.S. control of more than 65 billion barrels of oil reserves, a deal he touted as a historic boost to American energy security and a potential long-term solution to rising gas prices.
In a post on Truth Social, Trump declared the agreement “THE BIGGEST OIL DEAL IN WORLD HISTORY,” claiming it “MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future.”
According to Trump, Secretary of State Marco Rubio and Secretary of War Pete Hegseth negotiated the agreement with Venezuela’s interim President Delcy Rodriguez and private businesses. The president did not specify which companies are involved or how the U.S. would exercise majority control over the reserves.
A Deal With No Public Details
The announcement was light on specifics. Trump did not outline the structure of the agreement, the terms of U.S. control, or the timeline for developing the reserves. He did, however, emphasize that the deal comes “at no cost to the American Taxpayer.”
This vagueness has left energy analysts and observers questioning the feasibility of the arrangement, particularly given Venezuela’s long history of economic mismanagement and infrastructure decay.
Venezuela sits atop the largest proven oil reserves in the world—roughly 303 billion barrels, according to the U.S. Energy Information Administration. The 65 billion barrels cited by Trump represent a substantial slice of that total, but the country has struggled for years to turn those reserves into actual production.
Decades of sanctions, government mismanagement, and collapsing infrastructure have crippled Venezuela’s oil industry. Despite holding about 17% of global oil reserves, the country accounts for only about 1% of global production.
Timing Amid Rising Energy Prices
The deal arrives at a moment of acute energy market stress. The ongoing war with Iran has disrupted global oil markets, particularly through the Strait of Hormuz, a critical shipping corridor for crude. Oil prices have climbed sharply, and the U.S. has drawn down its Strategic Petroleum Reserve to levels not seen in decades, per CNBC.
The reserve fell below 300 million barrels earlier this month—more than 100 million barrels below its level at the beginning of 2026. Meanwhile, the average price of gasoline in the U.S. hovered around $4.09 per gallon on Thursday, according to AAA.
Trump has repeatedly argued that boosting domestic energy production and securing reliable supply from friendly nations is the key to bringing prices down. The Venezuela deal, he said, would “greatly strengthen the already growing relationship between Venezuela and the United States.”
A Sudden Pivot in Relations
The agreement marks a remarkable turn in U.S.-Venezuela relations. Earlier this year, U.S. forces captured then-President Nicolás Maduro and brought him to the U.S. to face federal narcoterrorism and drug-trafficking charges. Since Maduro’s removal, Trump has signaled a desire to bring American energy companies back into Venezuela, touting the country’s massive petroleum reserves.
Now, with the announcement of this deal, the two countries appear to be deepening their ties in ways that would have seemed unimaginable just months ago.
What’s Next?
While Trump hailed the agreement as a game-changer, the practical impact on U.S. oil supply and gasoline prices remains uncertain. Developing the reserves covered by the agreement could give the U.S. a significant new source of oil, but any meaningful effect on supply would depend on how quickly production could be expanded and brought to market.
Given Venezuela’s dilapidated infrastructure and the years of disinvestment, analysts say it could take considerable time and capital before those barrels flow. The deal’s ultimate success will hinge on the willingness of American companies to invest in Venezuela’s neglected oil sector—and on the details that Trump has yet to reveal.
Source: www.dailywire.com — https://www.dailywire.com/news/trump-announces-biggest-oil-deal-in-world-history