Trump to use Venezuelan oil to refill US petroleum reserve; details of deal remain unclear

President Donald Trump announced on Friday that Venezuelan oil will be used to refill the United States' Strategic Petroleum Reserve (SPR), a move he called "THE BIGGEST OIL DEAL IN WORLD HISTORY." The SPR, which had dwindled to a 44-year low of approximately 290 million barrels as of August 21, is set to begin replenishing shortly.

However, the speed at which Venezuelan crude could reach the US reserve and its immediate impact on American motorists remains unclear. The agreement follows the US capture of former Venezuelan President Nicolás Maduro, who was taken to New York to face drug-trafficking charges. Acting President Delcy Rodríguez described the deal as a step toward rebuilding Venezuela's oil industry and boosting economic recovery, emphasizing that Venezuela retains ownership and sovereignty over its resources.

The deal covers the development of 17 oil fields with a potential of around 65 billion barrels, which could attract about $100 billion in investment into Venezuela's oil industry. A US company, formed with an unnamed private operator, has been granted rights to untapped oil fields for 100 years, with the US receiving 55% of the effective output.

Energy experts question whether Venezuela's aging and damaged oil infrastructure can be upgraded quickly enough to significantly increase production. Critics argue that the agreement represents a departure from Venezuela's long-standing policy of national control over its oil resources, while supporters see it as a historic step towards economic recovery.

The details of the agreement, including financing, the private operator's identity, and the precise terms, remain undisclosed.