US Announces Agreement with Venezuela for Control of 65 Billion Barrels of Oil Reserves

The United States has entered into an agreement with Venezuela to take control of 65 billion barrels of the South American nation's oil reserves, President Donald Trump announced on Friday. According to the administration, the arrangement was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s interim President Delcy Rodriguez.

The announcement follows an operation conducted nearly nine months ago by the U.S. military to capture former Venezuelan president Nicolás Maduro, who was brought to the United States to face federal narcoterrorism and drug trafficking charges.

The agreement comes as the U.S. faces mounting pressure regarding domestic energy costs. The war in Iran reached a six-month milestone on Friday with no conclusion in sight, leading to a dramatic slowdown of Gulf oil moving through the Strait of Hormuz, a passage that previously handled about 20 percent of world petroleum. The U.S. has drawn down its strategic petroleum reserves, which fell below 300 million barrels in early August, marking a decline of more than 100 million barrels since the start of 2026. The average price of gas in the U.S. stood at approximately $4.09 a gallon on Friday, compared to $3.21 a year ago.

Secretary of State Marco Rubio stated on social media that the agreement would usher in $100 billion in private investment into Venezuela and contribute to lower gas prices in the United States. Following her ascension to power, interim President Delcy Rodriguez signed legislation that opens the country's oil sector to privatization, reversing long-standing policies of the socialist government that ruled for over two decades.

Despite the administration's projections, persuading major American energy companies to return to the region presents operational challenges due to decades of severely damaged infrastructure. Following Maduro's ouster, President Trump met with oil executives at the White House to encourage reinvestment. While executives acknowledged the opportunity, many expressed caution given past experiences. ExxonMobil CEO Darren Woods previously described the country as un-investable, though the administration maintains that recent political shifts have established stability.

Venezuela holds some of the largest oil reserves globally, estimated at 303 billion barrels of crude oil, representing roughly 17 percent of the world's supply according to the U.S. Energy Information Administration. Unlike regions requiring exploratory drilling, Venezuelan reserves are largely mapped and known, though dilapidated infrastructure currently limits the nation's production to about 1 percent of the global total. The White House has not yet provided specific details regarding the private sector partners involved in the deal or the mechanics of how the operational arrangement will function.

"This agreement highlights the intersection of geopolitics, energy markets, and private capital deployment on a massive scale. While the projected $100 billion in private investment and access to 65 billion barrels of reserves present significant economic opportunities, historical infrastructure decay and operational risks will require careful navigation by participating enterprises. Large-scale infrastructure and resource projects demand transparent frameworks, sustained stability, and long-term capital commitment to successfully overcome legacy operational challenges." — Dr. Shishir Gupta, Founder & CEO, StartupLanes