Trump secures vast, potentially costly, U.S. stake in Venezuelan oil industry

US President Donald Trump announced a monumental oil deal with Venezuela, granting the United States majority control of 65 billion barrels of proven petroleum reserves. This historic agreement, described as "the biggest oil deal in world history," will inject nearly $100 billion in private investment into Venezuela, according to US Secretary of State Marco Rubio.

The deal comes amidst Venezuela's government facing intense pressure and scrutiny from the Trump administration since the ousting of President Nicolas Maduro in January.

While the Venezuelan government has yet to confirm the arrangement, Trump boasted about the deal's potential to more than double US oil reserves and lower gasoline prices for American citizens. He credited Secretary of State Marco Rubio and Defense Secretary Pete Hegseth for securing the deal through a partnership with private business. Rubio emphasized that the agreement would strengthen the already-growing relationship between Venezuela and the United States, driving America's "America First" foreign policy.

The deal is set to benefit Venezuela's economy, bringing in thousands of high-paying jobs and supporting the reconstruction of the country's oil infrastructure. Axios reported that the two nations were in talks regarding a dozen productive oil fields, containing 90 billion barrels of proven reserves - approximately a third of Venezuela's total proven reserves of 300 billion barrels.

In exchange for a US ownership stake, private companies, including American firms, would develop the fields and return more oil revenue to Venezuela.

Despite the potential benefits, the US oil industry remains cautious due to Venezuela's dilapidated infrastructure and history of foreign investors' assets being appropriated by the government in Caracas. However, Trump remains optimistic, insisting that the deal will significantly impact the US strategic petroleum reserve, which is at a 40-year low.