Trump says US has entered deal with Venezuela to take control of 65 billion barrels of oil reserves

President Donald Trump announced Friday that the United States has entered a major agreement with Venezuela, potentially granting access to the South American country's vast untapped oil reserves. If realized, the deal could provide the U.S. with significant benefits.

The agreement, negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela's acting President Delcy Rodríguez, involves developing 17 oil fields with a total potential of 65 billion barrels. This deal is touted as the "biggest oil deal in world history" by Trump.

The agreement allows for the U.S. to partner with an unnamed private operator in Venezuela to establish a new private company to control the reserves. The company would be granted 100-year rights to develop the oil fields and would possess a 55% effective output, including an ownership stake and rights to purchase oil at cost. This makes the company the second largest holder of proven oil reserves after Saudi Aramco.

The agreement could potentially generate over $209 billion in taxes for Venezuela and draw $100 billion in investment into the country's oil industry. Trump expressed optimism, stating that the deal would have a "significant impact on our nation's revival."

However, experts caution that substantial increases in Venezuelan oil production will take years, requiring billions of dollars to repair and expand infrastructure. Additionally, persuading major American oil companies to return to the region may be challenging due to political uncertainty and damaged infrastructure. Despite these challenges, Trump insists that his administration has brought stability to Venezuela.