Key facts
- Donald Trump announced a deal for the US to control over 65 billion barrels of Venezuela's proven oil reserves.
- The agreement aims to increase US oil reserves and lower domestic gas prices.
- Venezuela's interim president, Delcy Rodríguez, described the deal as historic, promising economic revival and increased crude output.
- The deal reportedly involves a partnership with private business, with the US government retaining 55% control of a joint venture.
- Critics within Venezuela have raised doubts about the agreement's legality and transparency.
Donald Trump announced that the United States has secured a deal to control over 65 billion barrels of Venezuela's proven oil reserves, a move he stated would more than double American reserves and lower gas prices for consumers. The agreement, reportedly reached through a partnership with private business and involving US Secretary of State Marco Rubio and Defence Secretary Pete Hegseth, grants the US government 55% control of a joint venture operating in Venezuela's oil fields.
Venezuela's interim President Delcy Rodríguez hailed the accord as 'historic,' emphasizing its role in her nation's economic revival, increased crude output to 1.5 million barrels per day, and preservation of sovereignty. She projected significant benefits, including over $100 billion in private investment and more than $209 billion in taxes for Venezuela over the 25-year duration of the deal. Rodríguez stated the agreement aims to modernize the industry, boost economic growth, and ensure hemispheric energy security.
However, the deal has faced skepticism and criticism. Some analysts question its effectiveness in overcoming Venezuela's long-standing investment obstacles, such as political uncertainty, a weak power grid, and limited export capacity. Within Venezuela, opposition lawmaker Henrique Capriles raised concerns about the agreement's opacity and potential constitutional challenges. Energy experts like David Goldwyn noted the lack of precedent for such a US government arrangement and questioned its legality under Venezuelan law. Alexander Kuiper and Rachel Ziemba suggested that while the deal is significant, its actual impact on global oil supplies and investment remains uncertain due to a lack of detailed information.