US President Donald Trump has announced unprecedented efforts by the US to establish control over one-fifth of Venezuela's vast oil reserves, betting that American companies can revive the OPEC member's crumbling energy industry while providing a new source of oil to lower fuel prices in the US. This was reported by Reuters.
Trump provided few details about the agreement, stating only that the US has secured majority control over more than 65 billion barrels of Venezuelan oil through a partnership with private business. The leader of the South American country welcomed the agreement, saying it would boost the economy and government revenues.
The new agreement will represent a sharp expansion of the US role in Venezuela's oil industry as the Trump administration seeks to revive production in the country and secure more oil for US refining plants. Venezuela has the largest oil reserves in the world but produces only about 1.25 million barrels per day, which is far less than its potential due to underinvestment, mismanagement, and sanctions.
“At my direction, Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth, working closely with Venezuela's interim president Delsi Rodriguez and private business, have secured US control over the majority of Venezuela's oil reserves of more than 65 billion barrels without any cost to American taxpayers,” Trump wrote on Truth Social.
The announcement followed weeks of negotiations between the US and Venezuela regarding an agreement that will provide American companies with long-term access to a group of Venezuelan oil fields and guarantee the supply of crude oil to the US as a result.
Venezuelan officials are preparing to sign agreements next week that will grant several companies, particularly American ones, new rights to oil production.
