Trump says Venezuelan oil will refill depleted US petroleum reserve

US President Donald Trump announced on Sunday that oil acquired through a new agreement with Venezuela will be utilized to replenish the Strategic Petroleum Reserve, which has significantly diminished over recent years due to global supply challenges and escalating fuel prices. In a social media post, Trump emphasized that this move will counteract the depleting reserve, which has been largely depleted under the administration of former President Joe Biden.

He indicated that the process of "topping up" the reserve will commence shortly. Trump characterized the Venezuelan oil as a "gift from Venezuela to the people of the United States." According to Energy Department data, crude oil stocks in the US Strategic Petroleum Reserve declined by approximately 5.3 million barrels in August, reaching a record low of 293.4 million barrels since 1982.

The reserve, established in 1975 to mitigate future supply disruptions following the 1973 oil embargo, was struck under a deal granting a US-backed entity control over 65 billion barrels of oil. However, the production, transportation, and infrastructure development are prerequisite steps, as much of Venezuela's crude does not meet the minimum specifications required for the reserve.

The US has already drawn from this stockpile amid the ongoing war in Iran, which has disrupted oil flows through the Strait of Hormuz, traditionally accounting for about a fifth of the global petroleum supply. The US-Venezuela agreement was announced on Friday, with the US gaining a stake in Venezuela's oil reserves nine months after the capture of then-President Nicolas Maduro, currently facing narco-terrorism charges in New York.

The interim President of Venezuela, Delcy Rodriguez, hailed the deal as "historic" in a televised address on Saturday, stating that it would last for 25 years while enabling Venezuela to develop its oil industry and retain "ownership and sovereignty" over its resources. The project aims to develop 17 strategic oilfields, with an initial production target of 1.5 million barrels per day.