Muhammad Amanullah | August 29, 2026

WASHINGTON: US President Donald Trump has announced what he described as the “biggest oil deal in world history,” saying the United States has secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves.

Trump announced the agreement on his social media platform, Truth Social, saying the deal was negotiated with the involvement of US Secretary of State Marco Rubio, Secretary of War Pete Hegseth, Venezuela’s interim President Delcy Rodriguez and private-sector companies.

According to Trump, the agreement will significantly expand US access to Venezuelan crude oil, increase energy supplies and eventually help reduce gasoline prices for American consumers.

Trump Calls It the Biggest Oil Deal in History

Trump described the agreement as a historic transaction and claimed that it would more than double the United States’ oil reserves.

He said the arrangement would provide the US with majority control over more than 65 billion barrels of proven Venezuelan oil reserves and would be carried out without direct cost to American taxpayers.

The US president also said increased oil production could strengthen American energy security and help bring down gasoline prices in the long term.

However, the administration has not yet publicly released all the legal and financial details of the agreement, including the precise structure of the ownership arrangement and the companies involved.

Marco Rubio and Pete Hegseth Played Key Roles

Trump said Secretary of State Marco Rubio and Secretary of War Pete Hegseth played a central role in negotiations to finalize the agreement.

The negotiations were conducted in cooperation with Venezuela’s interim President Delcy Rodriguez and private businesses.

The arrangement is expected to involve substantial private-sector investment in Venezuela’s oil industry, with the goal of increasing production and rebuilding infrastructure that has suffered from years of underinvestment and operational difficulties.

Rubio said the agreement could attract nearly $100 billion in private investment, create thousands of jobs and contribute to the reconstruction of Venezuela’s economy.

Agreement Covers Major Venezuelan Oil Resources

Venezuela possesses the world’s largest proven crude oil reserves, estimated at around 303 billion barrels.

The newly announced agreement reportedly focuses on gaining greater US involvement in a portion of those reserves, particularly through the development and expansion of major oil fields.

Reports indicate that the arrangement could involve the development of 17 strategic oil fields. Venezuelan officials have also said the agreement could generate significant investment and tax revenue for the country.

The 65 billion barrels cited by Trump represent roughly one-fifth of Venezuela’s total proven reserves.

US Hopes to Increase Oil Supply

The agreement comes at a time when the United States is seeking to strengthen its energy security and increase access to reliable crude supplies.

Trump has repeatedly emphasized increasing oil production and reducing energy costs for American consumers.

Greater access to Venezuelan crude could provide US refiners with an additional source of heavy oil, although increasing actual production will require substantial investment in Venezuela’s aging oil infrastructure.

Experts and industry officials have cautioned that rebuilding production capacity could take considerable time because of infrastructure problems, years of underinvestment and the technical challenges associated with Venezuela’s heavy crude.

Potential Impact on Gasoline Prices

Trump has argued that the agreement could eventually lead to lower gasoline prices in the United States.

The administration expects increased Venezuelan oil production and additional crude supplies to strengthen the overall energy market.

However, the immediate impact on gasoline prices is uncertain. Increasing Venezuelan production would require major investment and infrastructure improvements, meaning any significant increase in oil output could take years to materialize.

The deal could nevertheless provide the United States with a potentially important long-term source of crude oil.

Major Economic Opportunity for Venezuela

For Venezuela, the agreement could provide a major source of investment at a time when the country’s oil industry needs significant reconstruction.

Venezuelan officials have welcomed the agreement, saying it could attract more than $100 billion in private investment and generate approximately $209 billion in tax revenue for the Venezuelan state.

The investment could help rebuild oil infrastructure, increase production and create employment opportunities across the energy sector.

Venezuela has enormous oil resources but has struggled to fully exploit them because of declining infrastructure, economic instability, political uncertainty and years of insufficient investment.

US-Venezuela Relations Enter a New Phase

The agreement represents a major development in relations between Washington and Caracas.

For years, relations between the two countries have been marked by political tensions, sanctions and disputes over Venezuela’s government and oil industry.

The new agreement could significantly expand US involvement in Venezuela’s energy sector and create a new economic relationship between the two countries.

Trump has presented the deal as mutually beneficial, arguing that the United States will gain access to additional oil supplies while Venezuela will receive investment and economic support.

Legal and Structural Questions Remain

Despite the announcement, important questions remain about how the agreement will actually operate.

Trump has not publicly provided the complete legal structure of the deal, the names of all participating companies or the exact oil fields covered by the arrangement.

Reports also indicate that Venezuela’s legal framework and long-standing state control over the oil industry could create challenges for implementing some aspects of the agreement.

Analysts have therefore cautioned that the announcement represents a major strategic development, but its ultimate economic impact will depend on the details of the final agreements and the ability of companies to restore Venezuela’s oil production capacity.

A Major Shift in Global Energy Politics

The agreement could have implications beyond the United States and Venezuela.

If Venezuelan oil production rises significantly, additional crude supplies could enter international markets and potentially influence global oil prices.

For Washington, greater access to Venezuelan oil could strengthen its energy position in the Western Hemisphere. For Caracas, increased foreign investment could provide much-needed revenue and support economic recovery.

The deal therefore represents not only an energy agreement but also a potentially significant shift in the geopolitical and economic relationship between the United States and Venezuela.

What Happens Next?

The next stage will focus on the implementation of the agreement, the signing of detailed contracts and the participation of private oil companies.

Venezuelan authorities are expected to move forward with agreements involving exploration and production rights, particularly for US companies.

The success of the deal will ultimately depend on investment, infrastructure development, legal arrangements and the ability to increase Venezuelan oil production.

For now, Trump has presented the agreement as a historic victory for US energy security, while Venezuela views it as an opportunity to attract investment and rebuild its struggling oil industry.