Trump unlocks 65 bn-barrel Venezuela oil jackpot

U.S. President Donald Trump announced on Friday that his administration has reached a monumental agreement with Venezuela, potentially granting access to the South American country's vast untapped oil reserves. The deal, brokered by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela's acting President Delcy Rodríguez, could unlock 17 oil fields with a proven potential of 65 billion barrels.

Under the agreement, the U.S. will partner with an unnamed private operator to establish a new company that will have the rights to develop the oil reserves for 100 years. The company will hold a 55% effective output, including an ownership stake and the ability to purchase oil at cost. This would make the company the second-largest corporate holder of proven reserves after Saudi Aramco.

The deal is expected to attract $100 billion in investment into Venezuela's oil industry, generating over $209 billion in taxes for Caracas. The agreement allows the U.S. to take hold of the reserves and fill its strategic petroleum reserve, as well as meet military needs. However, experts warn that substantial increases in Venezuelan oil production will not occur quickly due to the time and billions of dollars required to repair and expand infrastructure.

The announcement comes amid rising pressure on Trump to lower oil costs, as the U.S. gas prices remain high at around $4.09 per gallon. The oil deal could provide a significant boost to the U.S. gas prices, but the relief is not expected to be immediate.