Trump says US is taking partial control of Venezuela’s vast oil reserves

Venezuela possesses the world's largest proven oil reserves, yet currently pumps out just around 1.25 million barrels daily. President Donald Trump declared on August 28th an unprecedented US initiative to assume control over 5% of the South American nation's abundant oil reserves, believing American firms can rejuvenate the oil sector and lower US fuel prices.

The US secured majority ownership of over 65 billion barrels of Venezuela's verified oil reserves via a collaboration with private enterprises. President Trump stated that this was accomplished "at my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez."

The announcement came after months of talks between the US and Venezuela about a deal granting American companies long-term access to Venezuelan oilfields and ensuring a stable supply of crude to the United States. Venezuelan authorities are set to sign contracts next week ceding new exploration and production rights to numerous companies, likely US firms.

The new deal would mark a significant escalation of US involvement in Venezuela's oil industry as the Trump administration aims to revive production and secure more crude for US refineries. However, the deal's specifics, including the fields and companies involved, remain undisclosed, along with how the US would exercise control over the reserves.

Secretary of State Marco Rubio described the deal as a victory for both nations, promising nearly $100 billion in private investment, thousands of high-paying jobs, and an economy revitalization for Venezuela. Experts remain uncertain about the legal and financial structure of the agreement and its potential to boost investment despite political uncertainty, limited export capacity, and government discretion over the industry.