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

President Donald Trump announced on Friday that the United States intends to take control of a fifth of Venezuela's extensive oil reserves. The aim is to rejuvenate the OPEC nation's struggling energy sector while also facilitating a new source of crude to help reduce U.S. fuel prices. Trump offered scant details about the deal, stating that the U.S. had obtained majority control of over 65 billion barrels of Venezuela's confirmed oil reserves through a private sector partnership.

The South American leader endorsed the agreement, stating it would stimulate the economy and government revenue. This deal marks a significant increase in the U.S. presence in Venezuela's oil industry, as the Trump administration strives to revive the country's production and secure more crude for U.S. refineries. Venezuela is home to the largest proven oil reserves globally, yet it only produces around 1.25 million barrels per day, a far cry from its potential after years of underinvestment, mismanagement, and sanctions.

The administration's push to seize this oil is intensified with the seizure of a Russian-flagged tanker linked to Venezuela. A senior administration official said the deal is a "win-win." According to Trump, at his direction, Secretary of State Marco Rubio and Secretary of War Pete Hegseth, in collaboration with Interim President of Venezuela, Delcy Rodriguez, have secured majority U.S. control of more than 65 billion barrels of proven oil reserves in Venezuela, without any cost to the American taxpayer.

The announcement came after weeks of negotiations between the U.S. and Venezuela over a deal that would grant American companies long-term access to several Venezuelan oil fields and guarantee a steady supply of crude to the United States. Venezuelan officials are expected to sign agreements next week granting new oil exploration and production rights to various companies, with a possible auction of these fields to U.S. producers.

However, the arrangement may face legal and constitutional challenges in Venezuela, where the state maintains control over key oil industry operations. The deal's structure, fields, involved companies, and the U.S. method of exercising majority control over the reserves remain undisclosed. Analysts emphasize the need for more details regarding the deal's legal and financial framework before evaluating its potential for attracting substantial investment.