US and Venezuela Announce Major Oil Deal Covering More Than 65 Billion Barrels
Washington, August 29, 2026: The United States and Venezuela have reached a major oil agreement that would give American interests majority control over more than 65 billion barrels of Venezuela’s proven petroleum reserves, according to an announcement by U.S. President Donald Trump. The deal is being presented by Washington as a major step toward rebuilding Venezuela’s damaged energy sector and increasing future oil supplies.
Trump described the arrangement as an historic transaction and said it could more than double U.S. oil reserves while helping reduce gasoline prices for American consumers. However, important details about the structure of the agreement and how the reserves will ultimately be developed have not yet been publicly disclosed.
Private Investment at the Center of Agreement
U.S. Secretary of State Marco Rubio said the arrangement could attract nearly $100 billion in private investment into Venezuela. The money is expected to support oil production, create jobs and contribute to the reconstruction of the Venezuelan economy.
Venezuelan interim President Delcy Rodríguez also welcomed the agreement, saying it could play an important role in the country’s economic recovery. Her government has indicated that the plan involves development of 17 strategic oil fields with proven reserves of around 65 billion barrels.
A U.S. official familiar with the arrangement said a new private company could be established with an American partner to develop the fields. The company would reportedly receive long-term development rights, although the complete legal and financial framework has not been released.
Why Venezuela’s Oil Matters
Venezuela possesses some of the world’s largest proven oil resources, but years of economic problems, declining investment and deteriorating infrastructure have prevented the country from producing anywhere near the potential of its reserves.
The new agreement is therefore intended not simply to secure crude supplies but also to attract capital and technical expertise needed to restore production capacity.
For Washington, additional Venezuelan oil could become particularly important as American motorists face elevated fuel costs. The Trump administration has been under pressure to bring gasoline prices down amid disruption in global energy markets linked to the war involving Iran.
Analysts Question How Quickly Production Can Recover
Despite the scale of the announcement, energy analysts have warned that controlling reserves does not automatically translate into immediate additional oil production.
Venezuela’s energy infrastructure requires extensive investment, while questions remain about the legal framework, operational arrangements and political stability needed to attract international companies. Reuters reported that analysts and oil industry figures have expressed skepticism over whether the agreement can overcome the obstacles that have discouraged investment in Venezuela for years.
Another major issue is timing. Even with substantial investment, restoring damaged oil fields, pipelines, refineries and related infrastructure could take years rather than quickly increasing supplies to the U.S. market.
A Major Shift in US-Venezuela Relations
The agreement represents a dramatic change in relations between Washington and Caracas. It follows the U.S. operation that removed Venezuelan leader Nicolás Maduro earlier this year and brought him to the United States to face federal charges.
The new oil partnership signals that the Trump administration is seeking to combine political changes in Venezuela with a broader strategy focused on energy production, private investment and economic reconstruction.
For Venezuela, the agreement could provide access to large amounts of foreign capital and potentially generate significant government revenue. Venezuelan officials have said the proposed development could eventually produce more than $209 billion in tax revenue for the state.
Whether the agreement can deliver cheaper fuel for Americans and a sustained economic recovery for Venezuela will depend largely on how quickly investment begins, how the oil fields are operated and whether the agreement’s legal and political uncertainties can be resolved.
